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Singapore’s Annual Exports Decline for the 11th Consecutive Month in August

Sep 18, 2023 #Singapore

Singapore’s economic data for August has revealed a concerning trend – the country’s annual exports have declined for the 11th consecutive month. As an economy heavily reliant on international trade, Singapore continues to grapple with the adverse effects of global inflation and decreasing demand. In this article, we will delve into the economic situation in Singapore, as reflected in the August data, and explore the ongoing challenges it faces.

1.Persistent Export Declines

Official data released on Monday indicated that Singapore’s non-oil domestic exports (NODX) for August experienced a year-on-year decline of 20.1%. This decline is more significant than the 15.8% contraction predicted by Reuters’ surveys and continues the trend observed in July, which saw a 20.3% contraction.

The decline in NODX can be attributed to reduced exports of electronic and non-electronic products to key markets such as the United States, Europe, and China. These challenges underscore the impact of global economic uncertainties on Singapore’s export-reliant economy.

2.Concerns and Analyst Insights

Economists, including Barclays economist Brian Tan, highlight the significance of monitoring changes in international trade. Tan notes, “It is evident that incremental changes in international trade are still the focus of our observation, and we have not yet seen any form of export stabilizing.”

The combination of sluggish economic growth and ongoing inflation has led economists to anticipate that the Monetary Authority of Singapore (MAS) will maintain its current monetary policy in the coming month. Brian Tan points out, “Even with weak growth, inflation has been persistently uncomfortable… Easing inflation would indeed be premature, and the central bank is expected to maintain a relatively cautious stance.”

3.Economic Performance and Expectations

Data from the Singapore Economic Development Board reveals that after seasonal adjustments, the economy contracted by 3.8% month-on-month, following a 3.5% contraction the previous month. This performance falls short of economists’ earlier forecasts of 5.5% growth.

Exports to the United States, which had seen a 34.3% growth in the previous month, experienced a sharp decline of 32.4% in August. This contraction is primarily attributed to a significant drop in non-electronic product exports.

Last month, Singapore narrowed its economic growth forecast for the year from a range of 0.5% to 2.5% to a more conservative range of 0.5% to 1.5%. The economy barely avoided recession in the second quarter, with a meager 0.1% seasonally adjusted growth.

Since October 2021, the MAS had implemented five consecutive tightening moves but opted to maintain its current monetary policy in April this year, reflecting concerns about the country’s economic growth prospects.


Singapore’s economic landscape is currently marked by persistent challenges in the form of declining exports, ongoing global economic uncertainties, and inflationary pressures. While the country has successfully navigated previous economic downturns, the current environment remains complex.

In the face of these challenges, Singapore’s policymakers and financial institutions are expected to maintain a cautious approach to monetary policy. As the nation continues to adapt to evolving global economic conditions, its ability to weather these headwinds will play a crucial role in determining its future economic trajectory.