Analysts see H2 rebound for non-oil domestic exports 

Sector to benefit from a more favourable global backdrop.

Singapore’s non-oil domestic exports (NODX) could still rebound in the second half of the year even after posting a worse-than-expected fall in June, according to RHB.

Economists at RHB expect NODX to gradually increase through the rest of the year and post a 0.5% increase for the whole of 2024. 

The 8.7% YoY drop in June marked the fifth consecutive month of decline was primarily driven by weak electronic and non-electronic shipments. With NODX’s inherent unpredictability, particularly for volatile items, last month’s disappointing print does not signal a long-term trend for the entire segment, according to the analysts.

The improving global economic climate could also help lift Singapore’s exports in the year ahead, they said.

Manufacturing and trade-related sectors will likely be the main drivers of growth for NODX in the second half thanks to the upswing in the global tech cycle.