IS SINGAPORE ECONOMY LOSSING STEAM?

Is the engine that drives the Singapore economy slowing down? This is questions on the minds of many economist in Singapore.

In the sharpest decline in 17 months , the non-oil domestic export (NODX) dropped a shocking 10.5%!

The governments trade arm blamed the sharp fall in last month's NODX on a 'contraction of both electronic and non-electronic' shipments.

The monetary authority of Singapore has downgraded their full year gdp from 6.3% to 5.5%.

Economists said that the surprise fall in May's NODX may be a sign that consumer demand is softening as the global economy loses steam.

Asian exports, which go largely to the US and Europe, are expected to slow this year as the global credit crunch and crisis-strickened US housing sector take a toll on demand.

Singapore's domestic exports to China dipped 1.5 per cent last month, after a 19.1 per cent surge in April.

In fact, last month's NODX fell across all of Singapore's top 10 markets except for Indonesia and Taiwan, with Europe and the US leading the declines.

Singapore's domestic exports to China dipped 1.5 per cent last month, after a 19.1 per cent surge in April.

In fact, last month's NODX fell across all of Singapore's top 10 markets except for Indonesia and Taiwan, with Europe and the US leading the declines.

Domestic shipments to the EU - Singapore's largest market - slumped 28 per cent, while exports to the US fell 22 per cent.

Report from business times