Singapore March exports fall 8.3% year over year, drop less than forecast

SINGAPORE - Singapore's March non-oil domestic exports (NODX) shrank 8.3 per cent year-on-year, official data showed on Monday (April 17), though the drop was smaller than the previous month and less than forecast.

Economists had expected a 20.8 per cent contraction in a Reuters poll. Exports had contracted 15.8 per cent in February.

On a seasonally adjusted month-on-month basis, NODX increased 18.4 per cent, Enterprise Singapore data showed, versus the prior month's 8.2 per cent decline. Economists had forecast 1.7 per cent growth.

The trade reliant city-state has now recorded six consecutive months of year-on-year contraction in the NODX, amid concerns over the economic outlook.

The Monetary Authority of Singapore (MAS) left its monetary policy settings unchanged last week, even though the inflation rate remains elevated, reflecting policy makers' concerns about its growth outlook.

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Although year-on-year growth was seen in non-electronic exports, electronic exports contracted 21.2 per cent in March, following a 13.1 per cent decline in February due to a decline in integrated circuits (ICs), personal computers (PCs) and disk media products exports.

"This upside surprise was mainly due to pharmaceuticals... so not sure if this upside surprise is really reflective of a improved external outlook," said Brian Tan, senior economist at Barclays.

"The electronics exports still looks fairly bleak," he said. Electronics are Singapore's main growth engine for exports.