Singapore lowers 2024 outlook for key exports to 4-5% growth
For the second half of 2024, support for key exports is expected to come largely from the electronics recovery, driven by AI demand, Enterprise Singapore said. PHOTO: ST FILE
Timothy Goh
Updated
Aug 14, 2024, 05:51 AM
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SINGAPORE - Singapore expects growth in key exports to come in at 4 per cent to 5 per cent in 2024 – the lower end of its forecast range of 4 per cent to 6 per cent.
This comes as non-oil domestic exports (Nodx) fell 6.4 per cent in the second quarter of 2024 on the back of volatile pharmaceutical demand, faster than the 3.4 per cent decline in the previous quarter.
For the second half of 2024, support for Nodx is expected to come largely from the electronics recovery, driven by demand for artificial intelligence (AI) servers and consumer devices, Enterprise Singapore said on Aug 13.
The trade agency noted that the International Monetary Fund projected the global economy would grow by 3.2 per cent in 2024. Most of Singapore’s key trade partners, including China, the United States, Europe and Asean, are projected to grow in 2024.
“Key downside risks remain for the Nodx forecast, including a weaker-than-expected recovery in the second half of 2024, which could potentially lead Nodx growth for the year to come in below the forecast range,” it added.
Compared with a year earlier, domestic exports of electronic products grew by 3.8 per cent in the second quarter of 2024, reversing a 1.6 per cent decline in the first three months of 2024.