Singapore's exports grow 9.7% in April, bolstered by surge in pharmaceutical shipments

Singapore's non-oil domestic exports (NODX) rose unexpectedly by 9.7 per cent year-on-year in April, defying market consensus for a contraction, after shipments were bolstered by a surge in demand for pharmaceuticals and processed food.

This marks a third straight month of expansion, but is down from the 17.6 per cent growth that was seen in March, according to official data released on Monday (May 18).

A Reuters poll had predicted a 5 per cent decline.

April's expansion was led by gains in pharmaceutical exports, which rose 174.3 per cent from a year ago, while electronics declined.

OCBC's head of research and strategy Selena Ling attributed the lift in pharmaceutical exports to the COVID-19 pandemic, with medical supplies being in high demand globally.

According to DBS senior economist Irvin Seah, while the pharmaceutical industry has benefited from the pandemic, it has little spillover effect on the rest of the economy, apart from its contribution to the headline GDP growth.

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