Singapore's non-oil domestic exports (NODX) declined more than expected in August due to decrease in both electronic and non-electronic shipments, data released by International Enterprise Singapore showed Monday.
On an annual basis, NODX slid 10.6 percent, reversing July's downwardly revised 5.7 percent growth. Economists had forecast a 3.3 percent drop in August.
Exports of electronic products contracted 11 percent in contrast to the 2 percent growth in the previous month. Expectations were for a more modest 1.2 percent decline. Non-electronic NODX decreased 10 percent compared to the 7.8 percent increase in July.
In August, NODX to European Union, China, Malaysia and Thailand contracted, while that to Taiwan, Hong Kong, Japan, South Korea, Indonesia and the U.S. saw an increase.
Meanwhile, total exports declined 5.9 percent year-on-year in August, in contrast to the 0.2 percent expansion in the previous month. At the same time, imports decreased 8.3 percent following a 6 percent increase in the previous month.
Month-on-month, total exports contracted 3.8 percent and imports fell 0.2 percent.
Government data showed last 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.
Last week, economists surveyed by the Monetary Authority of Singapore downgraded the GDP forecast for this year to 2.4 percent from 3 percent growth predicted in the June survey. The GDP outlook for 2013 was also cut to 3.9 percent from the previous prediction of 4.5 percent.
Non-oil domestic exports are seen growing 4.2 percent this year compared to the previous prediction of 5.6 percent, according to the central bank survey.
by RTT Staff Writer
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