Singapore's Non-Oil Exports Surge 15.7% in July, Ending Five-Month Slump and Boosting Growth Outlook

Singapore’s trade figures offer a fresh dose of optimism for the city-state’s economic prospects. According to Enterprise Singapore, non-oil exports saw a notable increase of 15.7% in July compared to the same month last year, marking the first rise since January. This robust growth halted a five-month decline and reflects a broader upswing in trade.

The positive trend extends to both imports and exports, with total trade expanding by 13.7% in July. Notably, exports to China grew significantly, driven by strong sales in specialized machinery, petrochemicals, and measuring instruments. This uptick suggests a rebound in global demand and provides a counterbalance to earlier concerns about a slowdown.

Previously, Singapore’s non-oil domestic exports had faced challenges. After five consecutive months of growth, April saw a 0.7% decline in exports year-on-year, attributed mainly to a sharp drop in pharmaceutical exports, which fell by 39.9%. Despite this, analysts considered it a temporary anomaly rather than a sign of ongoing weakness.

In April, the electronics sector continued to perform well, with exports increasing by 4.8% year-on-year, although the growth rate slowed slightly from March. This sector has been instrumental in supporting Singapore’s economy and helping it avoid a recession.

Despite a slowdown in export growth to China, which saw a dramatic decrease from 45.5% in March to 10.9% in April, the overall outlook remains positive. Analysts have adjusted their expectations but still anticipate a stable performance for Singapore’s trade in the coming months.

Singapore’s economy, having struggled in recent years, showed a mixed performance with a 1.9% contraction in the first quarter of the year, followed by a 2.5% growth compared to the previous year. The central bank has maintained its policy stance, citing ongoing risks to the global economy despite recent trade improvements.

Looking ahead, Singapore’s trade promotion agency has affirmed a growth forecast of 2% to 3% for the year, reflecting a positive adjustment from an initial forecast range of 1% to 3%. The improved export performance provides a boost to this optimistic outlook.