COTD: Singapore’s trade sees 10.1% growth in Q2 with rising imports and exports

Exports grew 7.6%, whilst imports expanded by 12.8%.

Singapore’s merchandise exports maintained a positive growth trajectory, whilst the manufacturing contraction eased in Q2 2024, McKinsey reported.

Merchandise exports grew 7.6%, whilst imports expanded by 12.8%. Total merchandise trade increased 10.1% from 4.8% in Q1.

On the flip side, non-oil domestic exports (NODX) fell 6.4% during the period, following volatile pharmaceutical demand, faster than the 3.4% decline in Q1.

McKinsey noted that electronics recovery, driven by demand for AI servers and consumer devices may support NODX growth in H2 2024.

Singapore's GDP grew 2.9% year-on-year (YoY) in Q2, slightly down from the 3.0% growth in Q1.

The manufacturing sector contracted by 1.0% in Q2, an improvement from the 1.7% contraction in Q1. Biomedical and precision engineering experienced declines, whilst the electronics sector showed a positive recovery, growing 3.3% after a 4.3% contraction in Q1.

The services sector grew 3.7% in Q2, moderating from 4.3% in Q1, with the finance and insurance, wholesale trade, and info-communications sectors being the top contributors to GDP.

Meanwhile, the construction sector saw slower growth of 3.8% from 4.1% in Q1.