SINGAPORE--Singapore's non-oil domestic exports grew faster in July, powered by strong artificial-intelligence-related demand and marking a firm start to the second half.

The city-state's non-oil domestic exports rose 24.2% in July from a year earlier, Enterprise Singapore said Monday. That compared with a revised 20.8% increase in June and the 26.50% growth forecast by economists polled by The Wall Street Journal.

Electronics exports, a key driver of Singapore's trade growth, rose 112% in July, accelerating from a 105.1% surge in June. The increase was due to robust AI-related demand, driven mainly by disk media products, integrated circuits and personal computers, said the government agency.

Non-electronics exports fell 2.3%, compared to a revised 2.8% decline in June.

For the first seven months of the year, non-oil domestic exports rose 19.4%.

Non-oil domestic exports to the U.S., China and Taiwan expanded in July, while shipments to the EU 27 contracted, said Enterprise Singapore.

The figures follow a strong first half for Singapore's trade-dependent economy. Gross domestic product grew 5.9% from a year earlier in the second quarter and 6.1% in the first half, helped by demand for AI-related semiconductors and equipment.

Singapore officials last week raised their 2026 economic-growth forecast to between 4.5% and 5.5%, from 2% to 4%. Enterprise Singapore also raised its non-oil domestic export forecast to growth of between 14% and 16%.

The government expects AI-related demand to continue supporting manufacturing and trade, but the outlook remains vulnerable to U.S. tariffs and supply disruptions caused by the Middle East conflict.

Trade headwinds are likely to persist for the rest of the year, Moody's Analytics economist Denise Cheok said in an email.

About one-third of Singapore's exports to the U.S. are expected to be affected by a new 12.5% U.S. tariff.

Cheok said tariff pressure could intensify ahead of the U.S. midterm elections in November. With the Strait of Hormuz still closed, much will depend on whether AI-related demand can offset this external volatility, Cheok said.

 
Singapore's Non-Oil Domestic Exports to Top Markets (% Y/Y) 
 
                              July            June 
U.S.                         +62.8           +36.7 
China                        +37.6            +7.7 
Taiwan                       +32.4          +123.3 
South Korea                  +53.3           +62.9 
Malaysia                     +23.4           +35.3 
Hong Kong                    +36.4           +25.9 
Thailand                     +18.0           +41.5 
India                        +13.0           +18.2 
Indonesia                    +12.4            +2.7 
EU 27                        -35.5           +20.8