AsianFin -- Singapore’s non-oil domestic exports (NODX) fell 4.6% year-on-year in July, sharply missing forecasts and reversing the strong growth seen in June, according to government data released Monday.

The contraction, driven largely by a decline in pharmaceutical and other non-electronics shipments, was steeper than the 1.8% drop projected in a Reuters poll. June’s export growth was revised to a 12.9% gain.

By market, shipments to the U.S., China and Indonesia fell in July, while exports to the EU, Taiwan, South Korea and Hong Kong rose.

The weak trade figures come despite Singapore’s economy performing better than expected in the first half of the year. Just last week, the government raised its 2025 GDP growth forecast to a range of 1.5% to 2.5%, up from 0% to 2% previously.

Still, policymakers remain cautious as global demand slows and external uncertainties mount. Adding to the pressure, Singaporean goods face a 10% U.S. tariff, even though the two countries have a free trade agreement, and despite Singapore’s long-standing trade deficit with the U.S.