Singapore's exports fell the least in nine months in June

Singapore  - Singapore's non-oil exports fell the least in nine months in June, government data released Friday showed, thus raising hopes of a rebound as the city-state tries to emerge from its worst recession in more than four decades.

The fall in external trade levelled off in June, as non-oil exports declined 11 per cent from a year ago, compared to a fall by 12 per cent in May, said International Enterprise Singapore, the city-state's agency to promote external business.

Singapore's exports fell the least in nine months in June However, on a month-to-month basis, Singapore's non-oil exports contracted 5.2 per cent in June, following a 5.3 per cent increase in May, thus dashing hopes of a quick economic recovery.

On Tuesday, the government raised its growth forecast for 2009 after the trade-reliant economy jumped more than 20 per cent in the second quarter compared to the previous quarter, but it warned of "a weak recovery susceptible to downside risks."

Singapore's gross domestic product for 2009 was estimated to contract by 4 to 6 per cent, from a decline of 6 to 9 per cent predicted earlier.

The decrease in non-oil exports in June was due to lower exports from electronic and non-electronic goods, the agency said.

Following a continued drop in external demand, exports of electronic products contracted by 21 per cent in June compared to a year earlier, while external trade with non-electronic products - such as petrochemicals and machinery - shrank 4.6 per cent.

Total trade in June reached about 60 billion Singapore dollars (41 billion US dollars), contracting slightly by a seasonally-adjusted 0.4 per cent compared to a month earlier, after a 3.3-per-cent rise in May.

On a year-on-year basis, total trade declined by 25 per cent in June, following a slump by 27 per cent in May.

All of Singapore's top 10 markets for non-oil exports except Taiwan contracted in June, according to the agency.

Largest contributor to the fall was Europe with a hefty drop by 36 per cent following a moderate decline by just 9.6 per cent in May. (dpa)