Singapore’s non-oil domestic exports (NODX) fell unexpectedly in August compared to the same period last year, despite economists predicting a growth of 2.4 percent.
This means that the country’s economy could be heading for a decline in the current quarter.
According to IE Singapore, the republic’s NODX slid 6.2 percent on-year in August following a 1.9 percent contraction in July. August's NODX also marked the 7th consecutive monthly decline.
Except for China and Hong Kong, non-oil domestic exports to all of Singapore’s top 10 markets fell last month, with the EU, South Korea and Taiwan recording the biggest decline.
On the other hand, non-oil re-exports (NORX) rose 14.4 percent in August from a year ago following an 8.1 percent increase in July.
“August’s NODX surprised market expectations on the downside by re-affirming our view of a Q3 contraction in growth,” said DBS Senior Economist Irvin Seah, echoing the views of his peers at Barclays, Citibank and Credit Suisse.
“We have already pencilled in a contraction in our forecast for Q3 quarter-on-quarter GDP growth, but the August NODX report has raised (the) downward risks,” added Joey Chew at Barclays.
Overall, 50 percent of the eight economists polled by The Business Times predicted that Singapore’s economy may fall in the current quarter.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com