SINGAPORE: Exports in Singapore slumped in the third quarter, declining 5.4 per cent from the previous year, according to figures released by International Enterprise (IE) Singapore on Thursday (Nov 24).
Exports for the rest of the year are likely to remain gloomy, with IE Singapore downgrading its forecast to between -5.5 and -5 per cent from between -4 and -3 per cent.
However, the trade agency said growth is likely to pick up next year, with exports expected to come in at -1 to 1 per cent.
“For 2017, global growth is projected to pick up slightly as compared to 2016, supported by improvements in the growth outlook for advanced and developing economies like the US, Japan, NIEs and ASEAN,” IE Singapore said.
“Oil prices are also expected to improve in 2017 on the back of a further moderation in the surplus in global oil production,” it added.
Non-oil re-exports grew 2.5 per cent in the third quarter, in contrast to the 1.9 per cent decrease in the previous quarter, on the back of higher shipments of non-electronic re-exports.
Total merchandise trade declined by 5 per cent, following a 5.7 per cent contraction in the second quarter, while total services trade increased by 0.1 per cent, following a 2.3 per cent rise in the previous quarter.
On Thursday, the Ministry of Trade and Industry said Singapore’s economy grew by 1.1 per cent in the third quarter but contracted 2 per cent compared with the previous quarter. It also narrowed its growth forecast for the year to between 1 and 1.5 per cent from between 1 and 2 per cent.