Electronics export growth insufficient to boost Singapore's Q2 2024 economy

In the broader SEA region, however, the situation will be different.

Singapore's economic momentum will be subdued in Q2 2024 despite strong electronics exports, a report from the Institute of Chartered Accountants in England and Wales (ICAEW) revealed.

In April, Singapore recorded a 9.4% MoM growth in electronic non-oil domestic exports (NODX).

ICAEW underscored that soft domestic demand will weigh down economic growth for the year.

The report suggested that the recent growth in the services sector might be temporary, driven by events like concertgoers coming to Singapore. 

Similarly, the retail sector resumed its contractionary trend in March after a strong performance in Q4 2023.

The expert noted that it is unlikely for domestic demand to rise materially in Q2, given the softening labour market and high interest rates constraining business investments.

"As Singapore’s business investment tends to shadow exports closely, domestic consumption will be restrained in the face of uncertain external demand," ICAEW added.

Unlike in Singapore, electronics exports spurred economic growth in Malaysia. ICAEW also expects growth from electronics exports in Southeast Asia.