Singapore’s non-oil domestic export data likely declined in March

Singapore is due to release its March non-oil domestic export data on Monday. The data is likely to disappoint further, according DBS Bank. Export sales are projected to have declined 17.1% y/y, added DBS Bank. This is expected to be the sharpest drop on an annual basis since February 2013.

Pharmaceutical exports, in February, had grown sharply by 40% y/y and had assisted in bringing NODX growth in the positive level. However, it is likely that this will repeat in March given the uncertainty in pharmaceutical industry, noted DBS Bank.

Furthermore, the pharmaceutical sector has a very little effect on the remainder of the economy except the GDP growth. Meanwhile, the electronics export, which is a key factor of Singapore’s exports, continues to be weak, highlighted by the slow external demand that is primarily driven by Chinese economic slowdown.

Singapore’s exports to China have continued to declined and have weighed on the overall performance of export. Moreover, the Chinese economic slowdown is structural, implying that the weakness in NODX might continue for some time, said DBS Bank.