Business

Friday October 16, 2009

Singapore's exports recovery stalls in September


SINGAPORE: A recovery in Singapore's struggling exports stalled last month as global demand for the city-state's electronics and petrochemicals sputtered.

Exports excluding oil fell 7.2 percent in September from the same month of 2008 to 12.8 billion Singapore dollars ($9.2 billion) following a 7.2 percent drop in August, according to Trade and Industry Ministry figures released Friday.

Compared to August, exports rose a seasonally adjusted 3.0 percent. Singapore's exports have improved since January - when sales abroad plunged 35 percent - with smaller year-on-year drops until last month.

Some analysts expect a recovering global economy will extend recent improvements in demand for Asian exports into the fourth quarter.

"It looks more and more likely that the regional, if not the world, trade cycle will gather further momentum," said Robert Prior-Wandesforde, senior Asia economist for HSBC in Singapore.

Prior-Wandesforde said he expected Singapore's exports to grow in October for the first time in 18 months.

The island's economy expanded an annualized seasonally adjusted 15 percent in the July to September period, a second straight quarter of growth after a year of contraction.

The government expects the economy to shrink up to 2.5 percent this year after growing 1.1 percent last year.

Non-oil exports were equal to about 60 percent of gross domestic product last year.

Electronic products - which account for 37 ercent of non-oil exports - fell 14 percent while petrochemicals dropped 17 percent.

Pharmaceuticals rose 18 percent in September after rising 26 percent the previous month, the ministry said.

Oil exports, which account for 31 percent of total exports, fell 34 percent in September as prices plunged from a year ago.

Non-oil exports to Europe fell 15 percent, dropped 4.7 percent to the U.S. and slid 15 percent to China.

Non-oil imports fell 17 percent in September from a year earlier, after dropping 18 percent in August, the ministry said. - AP

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