Disappointing data could see Singapore's central bank change its tune at next year's monetary policy review, economists say.
Exports in the trade-reliant Southeast Asian city-state missed forecasts in November, data showed Wednesday, with non-oil domestic exports growing 1.6 percent on year, below estimates for a near 4 percent gain.
The data put exports on track for a second consecutive year of contraction, which could pose a serious headwind to 2015 growth, said economists at Australia New Zealand Banking (ANZ). Net exports account for nearly 30 percent of the country's gross domestic product (GDP).
The report is one of many data prints weighing on Singapore's tight monetary policy; core inflation fell to an eight-month low in October, while a central bank survey on Wednesday showed significant downside risks to growth. Economists now expect fourth-quarter gross domestic product to rise 2.3 percent on year, compared with earlier estimates of a 3.1 percent.
"The dismal tone in high frequency economic prints reinforces our view that growth is clearly slowing in certain sectors in the midst of supply side adjustments, which builds the case for an easing bias," ANZ stated in a note.
"With the disinflationary impulse from the down-move in commodity price (particularly oil), there are downside risks to inflation, translating to an opportunity to return to a more neutral monetary policy stance next April," they added.