Singapore, Singapore (4E) – Singapore’s exports in November unexpectedly dropped, the third decline in the last four months as demand for goods in the U.S. fell and shipments of electronics weakened.
In November, Singapore’s non-oil domestic exports fell by 2.5 per cent, lower than the 7.9 per cent rise in October.
Non-electronics shipments increased by 6.3 percent with gains in petrochemicals and pharmaceuticals. Petrochemical shipments rose 4.1 percent, while pharmaceutical exports climbed 29.6 per cent after inching up 2.7 per cent in October.
The report shows that companies exporting electronics saw a 16.5 per cent drop in shipments in in November compared to the same month in the previous year, after dropping 0.8 per cent in October.
With the global economic slowdown weighing on the demand for goods and services, the Singaporean government lowered its economic growth and export growth forecasts for the entire 2012. The Trade Ministry predicts a rise of 2-3 per cent in exports for 2012, and about 4 per cent for 2013.
Last week, a report was released last week showing U.S. companies maintaining lean inventories amid concerns of an economic slowdown if politicians fail to avert the “fiscal cliff,” a combination of deep spending cuts and tax increases due to take effect at the beginning of next year.
The decline in exports last month was largely due to slowing demand in the U.S., Malaysia and Hong Kong. Most of Singapore’s top 10 export markets fell in November except for the EU, China and Thailand.