Weak demand from major export destinations hits NODX momentum: UOB

Non-oil domestic exports (NODX) declined 25% in January 2023.

Global demand will continue to hit export momentum in Singapore due to “more aggressive monetary policy tightening and worries about economic slowdown in the developed markets,” analyst, UOB, said.

Last month, NODX was down 25% compared to 20.6% in December.

“It should also be noted that high base effects will continue to work against the NODX going into early 2023, as seen in Jan NODX,” it said.

More major export destinations are showing weaker demand such as the US, China, and the ASEAN region.

UOB said cracks in the export projections are visible as they see persistent contractions. There will likely be more contractions in the first half of 2023.

It projects a full year NODX to shrink by 5.5% this year.