Exports rose beyond expectations in May, but will its growth continue?

Singapore’s NODX jumped 12.4% YoY in May.

Non-oil domestic exports grew beyond expectations in May, rising by 12.4%, but with current global headwinds, the question of where exports will continue to grow at the same pace has been raised.

ING Senior Economist Nicolas Mapa said global trade trends will likely begin to manifest in future NODX releases.

"Accelerating inflation will likely sap some momentum from retail sales but at least for now, both exports and industrial production have held up pretty well," Mapa said. 

Singapore’s electronics PMI in May was also in the expansionary territory at 50.5.

Mapa added that a stronger-than-expected gain for NODX will also be "supportive for a decent 2Q GDP report."

He also expects moderate growth in Singapore’s exports to China in the near term, as the latter follows a more flexible zero COVID policy. In May, exports to China inched up by 0.2% despite work stoppages in Shanghai.