RTTNews - Singapore's exports in June dropped at the slowest pace in nine months as the economy strongly emerges from its deepest recession.
Non-oil domestic exports or NODX fell 11% year-on-year in June following a 12% decline in May, data released by the International Enterprise Singapore showed Friday. Economists had expected a fall of 10.8% in June. On a three-month moving average year-on-year basis, NODX dropped 14% after a 16% decline in the previous month.
Electronic NODX was down 21% in June after the 22% decline in the previous month. During the same period, non-electronic NODX decreased 4.6% led by reduced domestic exports of petrochemicals, primary chemicals, and heating and cooling equipment.
On a seasonally adjusted month-on-month basis, NODX dropped 5.2% due to lower electronic and non-electronic NODX. Meanwhile, economists had forecast an increase of 1.3% in June following a revised growth of 5.3% in May.
Earlier this week, Singapore raised its economic outlook for 2009 to show a contraction of between 4% and 6% instead of a 6% to 9% shrinkage predicted earlier.
Advance estimates for the second quarter revealed that the economy grew a seasonally adjusted annualized 20.4% from the preceding three months. The second quarter gross domestic product or GDP showed a decline of 3.7% compared with the same period last year, slower than the 9.6% drop seen in the first quarter.
Thursday, Managing Director of the Monetary Authority of Singapore, Heng Swee Keat said the recovery of the domestic economy still depends on the strength of final demand in the G3 - the U.S., Japan and Europe. The latest exports data indicate that demand continued to remain sluggish in these countries.
Exports to the U.S. decreased 5% in June after a sharp decline of 35% in May and those to Japan fell 22% following a 29% decrease. Shipments to the EU 27 declined 36% after logging a relatively small decline of 9.6% in the previous month.
Singapore's total non-oil re-exports or NORX decreased 1.6% month-on-month after adjusting for seasonal variations, in contrast to the 0.2% rise in the previous month, due to a decrease in both electronic and non-electronic NORX. Compared to the previous year, NORX declined 19% in June after the 21% contraction in the previous month.
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