Singapore Exports Unexpectedly Expand for Second Month in April

Singapore’s exports unexpectedly climbed for a second straight month in April, mainly due to a jump in pharmaceuticals.

Non-oil domestic exports grew 9.7% from a year ago, after gaining 17.6% in March, Enterprise Singapore said in a statement Monday. The median estimate in a Bloomberg survey of economists was for a contraction of 5%. Compared with the previous month, exports fell a seasonally adjusted 5.8%, versus a median estimate for a 19.8% contraction.

Key Insights

• Pharmaceutical exports surged more than 174% in April, climbing from a low base a year ago. Enterprise Singapore said the shipments are typically volatile and subject to fluctuations across months
• Trade-reliant Singapore is bracing for a severe hit to economic growth as the coronavirus has disrupted global supply chains and forced countries around the world into lockdowns. The government is projecting gross domestic product will shrink 1%-4% for the year
• Exports in the key electronics sector declined 0.6% in April from a year ago, far better than the 16.8% contraction forecast by economists in a Bloomberg survey
• The biggest jump in exports last month was to the U.S., with shipments surging 124% from a year ago. Exports to China, Malaysia and Indonesia plunged