Singapore’s non-oil domestic exports declined by 8.7% year-on-year in June, a sharper drop than the 1.2% contraction predicted by economists. The decline was primarily driven by weakness in non-electronic products, particularly volatile items like non-monetary gold. While port congestion in Singapore and disruptions from the Red Sea crisis are hindering export recovery, healthy manufacturing and electronics sentiment suggest underlying demand remains strong.
Maybank economist Chua Hak Bin anticipates that the disruptions could continue for several months, leading to pent-up demand and a potential surge in export volumes by the end of the third quarter. Exports to key markets like Hong Kong also suffered significant declines due to reduced shipments of various products.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
Despite the disappointing June performance, the potential for a rebound in the coming months remains, suggesting continued monitoring and analysis are necessary.