SINGAPORE – Singapore has raised its full-year trade forecasts after its export performance in the second quarter of 2022 came in better than expected due to higher oil prices and electronics.

Total merchandise trade is expected to grow by 15 to 16 per cent this year, up from the previous projection of 8 to 10 per cent, while non-oil domestic exports (Nodx) is expected to grow by 5 to 6 per cent, up from the previous forecast of 3 to 5 per cent, Enterprise Singapore said on Thursday (Aug 11).

“Higher oil prices and robust global semiconductor demand are likely to continue in 2022. These should support growth in oil trade in nominal terms and Nodx respectively, and in turn total trade,” ESG said.

For the second quarter this year, Nodx increased 9.1 per cent year on year, easing from the 11.4 per cent growth in the first quarter. The expansion was mainly due to the growth in shipments of non-electronics products, which rose by 8.9 per cent in the second quarter.

Exports for electronic products also expanded, by 9.7 per cent in the second quarter – its ninth straight month of growth, following the 12.3 per cent increase in the previous quarter.

Total merchandise trade grew 28.1 per cent year-on-year in the second quarter , extending the 20.8 per cent growth in the first quarter.

This was supported by both oil and non-oil trade. Oil trade had expanded 69.5 per cent in the second quarter of this year, while non-oil trade grew 19.9 per cent.