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Exports likely to contract this year: IE Singapore

Singapore’s exports are likely to fall this year, following a poor performance by the electronics industry in the first half of the year, the trade agency says.

SINGAPORE: The Republic's non-oil domestic exports (NODX) are likely to contract by 1 to 2 per cent this year, following a poor performance by the electronics industry in the first half of 2014, trade agency International Enterprise (IE) Singapore said on Tuesday.

IE Singapore had previously predicted NODX would grow by between 1 and 3 per cent this year.

Total trade is, however, likely to grow by between 1.5 and 2.5 per cent this year, IE Singapore said, narrowing its forecast from the earlier 1 to 3 per cent.

"In the first half of 2014, NODX contracted year-on-year by 2.3 per cent, driven mainly by the poor performance of electronic NODX. Going forward, in tandem with the gradual pickup in global economic conditions, NODX will likely see a modest improvement," IE Singapore said in a statement.

Total trade, meanwhile, grew for a third straight quarter, with an increase of 2.9 per cent in the second quarter compared with the same period last year.

This followed a 7.2 per cent increase in the previous quarter, the trade agency said.

Non-oil exports (NOX), which includes both NODX and non-oil re-exports (NORX), grew 0.2 per cent in the second quarter, following the preceding quarter's 7.3 per cent rise.

NORX expanded by 2.9 per cent during the quarter, following the 14.3 per cent increase in the previous quarter, mainly due to higher shipments of electronic re-exports which outweighed the decline in non-electronic re-exports.