Singapore’s non-oil domestic exports (NODX) fell 4.6 per cent year-on-year in July, government data showed on Monday, highlighting market expectations as pharmaceuticals led a decline in non-electronics shipments. Economists had forecast a smaller contraction of 1.8 per cent. The fall came after a sharp 12.9 per cent jump in June.
Mixed Trade Performance Across Markets
Exports to the U.S., China and Indonesia declined during the month, while shipments to the European Union, Taiwan, South Korea and Hong Kong registered gains.
Growth Outlook Adjusted Despite Tariffs
Despite ongoing trade headwinds, Singapore’s economy performed better than expected in the first half of 2025. The government last week raised its full-year GDP growth forecast to 1.5-2.5 per cent from an earlier 0.0–2.0 per cent. Authorities, however, cautioned that growth momentum will likely ease in the second half as frontloading of production and exports ahead of new U.S. tariffs slows.
Singapore, which has a free trade agreement and runs a trade deficit with the U.S., has still been subjected to a 10 per cent baseline tariff by Washington. Enterprise Singapore has maintained its forecast for NODX growth at 1–3 per cent this year but flagged potential weakness in the coming months.
Speaking at the National Day Rally on Sunday, Prime Minister Lawrence Wong expressed concern about the durability of current trade conditions. Lawrence said, “Because no one knows if – or when – the U.S. might raise the baseline. Or set higher tariffs on specific industries like pharmaceuticals and semiconductors,” adding, “What we do know is that there will be more trade barriers in the world. That means small and open economies like us will feel the squeeze.” (Inputs from Reuters)
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