Singapore's exports in record slump
SINGAPORE SINGAPORE'S non-oil domestic exports -- a key indicator of the republic's economy -- plummeted a record 30.7 per cent in September, the government said on Wednesday.
The sharp year-on-year fall, to S$7.11 billion ($3.9 billion), was due to slack global demand for electronics and air traffic disruptions caused by the September 11 terrorist attacks in the United States, the Trade Development Board said.
The result marks the sixth straight month of contraction in demand for non-oil exports, and tops the previous month's record fall of 29.9 per cent.
The September decline, however, was still lower than the 34 per cent tumble forecast by economists surveyed by Dow Jones Newswires.
The export-dependent republic is experiencing its worst economic downturn in its 36 year history. The government expects the economy to contract 3 per cent this year, in contrast to the robust 9.9 per cent growth rate experienced in 2000.
Song Seng Wun, an economist with GK Goh Research, said that if the September 11 terrorist attacks hadn't taken place, non-oil exports would likely have bottomed out. But now the risk of further sharp contractions remains.
Song said the economy would likely continue to struggle as the decline in manufacturing output filtered through the services sector as well. He added that he wouldn't be surprised if the economy contracted by another 30 per cent in coming months, on an annual basis. (AP)
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