Singapore Exports Drop 9 In April

 Singapore Exports Drop 9 In April

Singapore's Exports Drop 9.8% Y/Y In April

During the month of April, Singapore's exports (non-oil) dropped by 9.8% Y/Y, mainly due to a decline in electronics as well as non-electronic products.

According to a poll of economists, the exports were expected to drop by 9.4%, but the actual value turned out to be way higher.

If we look at the exports based on M/M on a seasonally adjusted basis, the exports increased by 2.7% during April. But it is also important to note that the growth during March was 18.4%. Selena Ling, which is an economist at OCBC, said that the recent export data shows weak momentum.

Recovery In 2023 Looks Elusive

For the most part, the recovery in the electronics sector looks elusive as we approach the second half of 2023. In fact, the Y/Y contraction in electronics (PCs, ICs, disk media, etc.) tells us that demand conditions are still not strong enough.

On the other hand, a surge in the exports of pharmaceutical products & devices was also witnessed. But even that would be insufficient to completely offset the drop in electronics exports.

If we look at the non-domestic exports of Singapore to its top 10 markets, there's a clear trend of decline as a whole.

For starters, Singapore's export to China is down by 20.9%. Some of the affected sectors include pharmaceuticals, petrochemicals, integrated circuits, etc.

Similarly, Singapore's export to Malaysia is also down by 35% and also includes all the above-mentioned sectors. In addition, the export of specialized machinery also declined as well.

Considering this decline in Singapore's exports, it makes sense to also look at the external factors rather than finding problems at a domestic level.

In fact, China is also struggling with lower-than-expected exports to other countries. This is an indication that global consumer demand is on the decline. And some of the major reasons for this are global inflation and higher interest rates.

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