Surprise 0.1% slip in key exports but economists remain optimistic

Experts point to boost in electronics and Feb data being affected by CNY slowdown

- Angela Tan

SINGAPORE – Singapore’s non-oil domestic exports (Nodx) slipped 0.1 per cent year on year in February to $12.99 billion, but most economists remained optimistic about the economy, given a notable improvement in key electronics exports.

They also pointed out that the February data was affected by Chinese New Year, a period which typically sees many workers taking time off, leading to a reduced workforce and potential delays in the production and shipment of goods. 

Still, the surprise dip was in stark contrast to Bloomberg’s consensus of a 4.7 per cent growth for February, and came after a 16.7 per cent year-on-year expansion in January.

Trade agency Enterprise Singapore (EnterpriseSG) also cited the impact of the Chinese New Year period in its release of Nodx data on March 18. It said that February’s figure was dragged by non-electronics products even as electronics exports rose.

However, for the first two months of 2024 combined, Nodx grew 8.4 per cent year on year.

This was an improvement from the 20.4 per cent year-on-year contraction registered for the same period in 2023, noted Ms Selena Ling, chief economist and head of global markets research and strategy at OCBC Bank.

Mr Brian Lee, an economist at Maybank, reckoned that base effects played a part in February’s Nodx decline, given that Chinese New Year in 2023 was earlier, in January.