Singapore's export growth increased more than expected in July, driven largely by demand from Asian countries, data released by International Enterprise Singapore showed Friday.
The country's non-oil domestic exports (NODX) expanded 5.8 percent year-on-year in July, faster than the expected 5 percent growth.
On an annual basis, NODX to all of the top ten markets, except the U.S., Japan and Malaysia and the European Union, increased during the month. The top three contributors to the NODX in July 2012 were Hong Kong, Taiwan and South Korea.
However, the growth rate was slower than the downwardly revised 6.6 percent in June. The slower growth in July was mainly due to the decline in demand from the European Union, which was among the top three contributors to the increase in NODX in June.
On an annual basis, exports of non-electronic products expanded 7.9 percent in July, following a 9.2 percent gain in June. The year-on-year expansion in electronic shipments accelerated to 2 percent in July from 1.6 percent in June.
Meanwhile, overall exports expanded 0.3 percent year-on-year in July, in contrast to the 0.5 percent decline in the previous month. At the same time, imports grew 6 percent following 6.1 percent increase in the previous month.
Month-on-month, total exports contracted 3.7 percent and imports fell 5.5 percent.
The Ministry of Trade and Industry said this month that the economy contracted 0.7 percent quarter-on-quarter in the second quarter following 9.5 percent growth in the first quarter.
According to the Ministry, the pull-back in quarter-on-quarter growth was largely due to the decline in externally-oriented sectors such as electronics manufacturing, as well as wholesale trade and tourism-related services.
The Ministry also lowered its GDP growth forecast for 2012 to 1.5-2.5 percent from the originally estimated 1- 3 percent. The Monetary Authority of Singapore forecasts 1-3 percent growth this year.
by RTT Staff Writer
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