| Actual | Previous | Revised | |
| Non-Oil Exports - Y/Y | 11.6% | 22.2% | 21.7% |
Highlights
Singapore's non-oil domestic exports rose 11.6 percent on the year in November, slowing sharply from the 21.7 percent increase recorded in October. Imports rose 7.4 on the year after advancing 20.9 percent previously.
The moderation in headline growth in exports was driven by regional trade partners, with weaker export growth for Taiwan and South Korea and year-over-year declines in exports to Japan and Hong Kong. This was partly offset by stronger growth in exports to the United States, China, and the European Union.
Weaker growth in headline exports was broad-based across categories. Electronic exports rose 36.0 percent on the year in November, down from growth of 51.7 percent in October, while exports of non-electronic products fell 8.6 percent after increasing 6.2 percent previously.
Definition
Singapore publishes monthly data (both in nominal and real terms) for the current and previous two months, cumulative-to-date data on imports and exports by country of origin and destination, as well as monthly seasonally adjusted trade data. Imports refer to goods brought into Singapore irrespective of whether they are for consumption, for processing, for use in manufacturing, or for subsequent re-shipment to other countries/areas. Exports refer to goods brought out of Singapore. They comprise domestic exports and re-exports. Data are also disseminated on imports broken down by country of origin and domestic exports and re-exports broken down by country of destination.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they also affect currency values in foreign exchange markets. However, the foreign exchange impact is muted here given that Singapore’s currency is managed by the central bank.
Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of the Singapore’s dependence on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.
This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.