Non-oil Domestic Exports (NODX) continued its downward slide in January decreasing by 35 per cent on a year-on-year basis, following the 21 per cent decline in December 2009. Electronic NODX contracted the most by 38 per cent in January 2009 caused by reduced domestic exports of parts of PCs, disk drives and parts of ICs and non-electronic NODX decreased by 32 per cent caused by reduced domestic exports of petrochemicals, disk media products and primary chemicals.
NODX to all top 10 export markets declined in January 2009. Exports to US, China and Malaysia declined the most.
1. NODX to the US decreased by 50 per cent
2. NODX to China contracted by 52 per cent
3. NODX to Malaysia contracted by 40 per cent
(Source: IE Singapore news release 17 February 2009)
Since Singapore’s economy is dependent on exports to a tune of two-third of Gross Domestic Product (GDP), a decline in exports in December and January spells deep trouble for Singapore. A contraction of Singapore GDP is achieving certainty for the whole of 2009 since the global economies will not turn the corner anytime soon. Ministry of Trade and Industry’s (MTI) forecast of -2.0 to -0.5 per cent GDP contraction for 2009 seems more likely as each month passed by.
Written on 2/18/2009 10:50 AM
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