Tuesday, April 18, 2017

More Modest Growth Expected Ahead As NODX Eases

Economic Research
18 April 2017
Singapore

Economic Update




Singapore’s non-oil domestic exports (NODX) expanded 16.5% YoY in March, slowing from a 21.1% spike in the month before. The moderation in growth was driven by softer semiconductor shipments and a gradually waning low base effect.
Going forward, we project for NODX growth to taper off in 2H17 after a strong growth in 1H17. We raise our projection for NODX to expand 3.9% in 2017 from 2% previously and compared to the 3.2% drop last year. This is underpinned by:
    i.   Growing semiconductor demand – supported by the cyclical smartphone super-cycle, as well as accelerating adoption in the automotive and Internet of Things (IoT) sectors; 
   ii.   Stronger economic growth in the US, which should benefit the overall global economy;
  iii.   Improving commodity prices, which would support ASEAN economic growth.


Economist:  Ng Kee Chou | +603 92802179

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