Singapore non-oil exports surge more than expected in Jan

Investing.com-- Singapore’s key non-oil exports rebounded sharply in January, aided by some improving demand in China and Southeast Asia, as well as a lower base for comparison from last year and the prior month. 

Non-oil exports surged 16.8% year-on-year in January- their fastest pace of growth in two years, official data showed on Friday. The figure also roared past expectations for growth of 5.4%, and the prior month’s contraction of 1.5%.

On a monthly basis, non-oil exports rose 2.3%, more than expectations for growth of 0.5% and improving from the 1.7% contraction seen in December. 

January’s reading points to some relief for the trade-reliant Singapore economy, which was struggling with a severe decline in overseas demand for its exports. Non-oil exports had slumped for 14 of the past 16 months, hit particularly hard by sluggish demand in China. 

Electronics- specifically integrated circuits, industrial machinery and refined petroleum products are the country’s top exports. Weakening global demand for technology and sluggish capital spending had also dented the country’s exports over the past year.

Data on Thursday showed the Singapore economy grew less than expected in the fourth quarter, at an annual pace of 2.2%. But it largely avoided a recession in 2023, benefiting from a rebound in tourism after China lifted COVID-era restrictions on travel.