Singapore’s exports surged above economists’ forecasts for a second consecutive month, signaling a recovery in the trade-dependent economy.

Key Points

Non-oil domestic exports rose 9.4 percent in December from a year ago, International Enterprise Singapore said in a report. The median estimate of 15 economists surveyed by Bloomberg was for a 5.8 percent increase.

Electronics exports increased 5.7 percent in the period, after a 3.5 percent gain in November.

Non-oil exports rose 1 percent in the month, compared with a median forecast for a 5.5 percent contraction.

Big Picture

A slowdown in global trade and lower oil prices have undermined growth in the export-driven economy, but a strong reading in November, when exports soared 11.5 percent despite a forecast for a small decline, has given hope for some improvement. The economy is expected to continue a modest pace of expansion, Ravi Menon, managing director of the Monetary Authority of Singapore, said Monday, with authorities forecasting growth of 1 percent to 3 percent for this year. Trade-oriented industries should benefit from a mild upturn in global and regional electronics, he said. Earlier this month, the trade ministry said preliminary data showed the economy expanded an annualized 9.1 percent in the three months to December from the previous quarter.

Other Details

Pharmaceuticals exports rose 7.3 percent in December from a year agoPetrochemicals surged 28.5 percent

Source:
courtesy of BLOOMBERG

by David Roman

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