Non-oil domestic exports continue to decline with 3.4% contraction in Q2

Total trade forecast is narrowed down to 1.5-2.5%.

The country’s non-oil domestic exports dipped by 3.4% year-on-year in the second quarter, prompting the government to lower this year’s total trade forecast down to 1.5-2.5%.

According to data released by International Enterprise Singapore, the quarters NODX was dragged down lower shipments of electronic exports, along with a decline in exports to all the top markets excluding China, Malaysia, and Indonesia.

The report showed that the biggest loss was posted by exports to Hong Kong, which contracted by 25.4% in Q2, following the previous quarter’s decline of 19.3%. NODX to the EU 28 also decreased by 13.1% in Q2, after the previous quarter’s contraction of 7.6%. Exports to Thailand declined by 11.5 per cent, following the 0.7 per cent decrease in the previous quarter

According to IE Singapore, “In the first half of 2014, NODX contracted y-o-y by 2.3 per cent, driven mainly by the poor performance of electronic NODX. Going forward, in tandem with the gradual pickup in global economic conditions, NODX will likely see a modest improvement, while NORX is expected to remain resilient. Taking all these into consideration, the projection for NODX is revised downwards to between -2.0 and -1.0 per cent, while the projection for total trade is narrowed to between 1.5 and 2.5 per cent.”