Non-oil domestic exports slow sharply to 2.7% growth in Q2 but full-year forecast also narrowed upwards

SINGAPORE - Non-oil domestic exports (NODX) grew 2.7 per cent in the second quarter, coming off the 15.3 per cent expansion in the previous quarter, with increased shipments of electronic products offsetting the decrease in non-electronics.

Notwithstanding the slowdown in export growth, IE Singapore narrowed upwards its growth projections for full-year NODX to 5 to 6 per cent from 4 to 6 per cent previously,  and for total merchandise trade to 6-7 per cent from 5-7 per cent.

This was given the better-than-expected performance of total trade and NODX to date this year and the view that "the global economic and trade outlook remains positive since the last update, notwithstanding uncertainties surrounding near-term economic and policy developments", said IE Singapore.

Year-on-year, exports of electronic products - which comprised 28.8 per cent of NODX in the first half of 2017 - increased by 13.3 per cent in the second quarter, following the 9.5 per cent growth in the first quarter, figures released on Friday (Aug 11) by International Enterprise (IE) Singapore show.

ICs, parts of PCs and PCs expanded by 25.1 per cent, 18.4 per cent and 11.4 per cent respectively, and they contributed the most to the increase in electronic NODX.

Exports of non-electronic products - which comprised a hefty 71.2 per cent of NODX in the first half-year - declined by 1.1 per cent, off the high-base a year ago, after the 17.8 per cent expansion in 1Q 2017. The largest contributors to the decrease in non-electronic NODX were civil engineering equipment parts (-82.5 per cent), pharmaceuticals (-30.5 per cent) and non-electric engines & motors (-49.9 per cent).

NODX to Singapore's top ten markets rose in the second quarter, except for the the European Union, Hong Kong and the US. The biggest contributors to the increase were China (+33.2 per cent), South Korea (+62.7 per cent) and Taiwan (+22.5 per cent).