Singapore upgrades 2026 key exports growth forecast to 14-16% on electronics-led H1 outperformance
Q2 NODX growth comes in at 27.4%, following the previous quarter’s 9.6% expansion
Enterprise Singapore has upgraded Singapore's non-oil domestic exports (NODX) growth forecast for 2026 to a range of 14 to 16 percent, from the previous forecast of 3 to 5 percent. This significant upgrade is primarily attributed to the impressive performance of NODX in the first half of the year, with key exports growing by 18.6 percent year-on-year. The strongest first-half performance since 2010 was observed in the H1 of 2026.
NODX growth in the second quarter was stronger than expected at 27.4 percent, following a 9.6 percent expansion in the first quarter. The surge in electronics NODX was a key driver, with a record 88.1 percent growth in Q2, building on the 57.8 percent growth in Q1. This growth was largely driven by year-on-year increases in shipments of integrated circuits, disk media products, and PCs.
Non-electronics NODX also showed positive growth, expanding by 8 percent in Q2 after a 3.5 percent contraction in Q1. Specialized machinery, pharmaceuticals, and measuring instruments were the main contributors to this growth. Overall, NODX to Singapore's top markets expanded in Q2, with Taiwan, the US, and South Korea being the key drivers.
The economy has remained more resilient than expected, supported by sustained AI-related demand and capital expenditure spending. Enterprises Singapore noted positive near-term sentiments domestically, with a strong double-digit net weighted percentage of firms in the electronics and precision engineering clusters expecting improved overseas deliveries in Q3 2026.
Favorable pricing expectations also contributed to the outlook, with a net-weighted 34 percent of semiconductor firms and 41 percent of precision engineering firms anticipating higher average selling prices in Q3.
Nevertheless, NODX growth is expected to remain supported in H2 2026, albeit likely to moderate due to high-base effects. Downside risks include the protracted conflict in the Middle East and higher tariffs imposed by the US.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
