Gov’t upgrades trade forecast following 27.3% expansion in Q2

Both non-domestic exports and re-exports saw double-digit growth in the second quarter.

Total merchandise trade grew by 27.3% in the second quarter of 2021, according to the latest data from Enterprise Singapore.

Oil trade growth exploded by 98.4% amidst higher oil prices compared to last year, a turnaround from two-quarters of declines. Non-oil trade rose by 18.9%.

Both non-oil domestic exports (NODX) and re-exports posted double-digit growth, by 10.1% and 26.6%, respectively.

“Taking the above into consideration, the 2021 growth projections are adjusted upwards for both total merchandise trade and NODX to +13.0% to +14.0%” and “+7.0% to +8.0%, respectively,” Enterprise Singapore said in its report.

Meanwhile, total services trade grew by 9.3% year-on-year, following a -9.8% contraction in the first quarter. Total services trade was at $124.5b, with services exports and imports expanding by 10.3% and 8.2%, respectively.