Singapore's non-oil domestic exports (NODX) exceeded forecasts in August expanding at the fastest pace since October 1988 as demand for electronic products surged due to artificial intelligence-related demand.

The indicator surged 46.2% year over year in August, accelerating from a 24.1% rise in July, according to data from Enterprise Singapore released Thursday. The print was faster than the consensus forecast of 35% tracked by Trading Economics.

Electronic exports soared 131.8% during the month, up from 112% in July. Integrated circuits contributed the most, with SG$1.9 billion, growing 90.9% during the period. Disk media products saw the fastest growth at 290.2%, contributing SG$1.4 billion. Personal computer exports grew 237.9%, adding SG$1.3 billion.

Non-electronic exports increased 12%, with non-monetary gold leading the expansion at 67%, followed by specialized machinery at 57.7% and medical apparatus at 22.1%.

The city-state's top three non-domestic oil export markets were the U.S., contributing SG$1.4 billion, followed by China, and South Korea. NODX to the European Union saw a slower contraction of 1.7% compared with the 36% plunge in July.

Meanwhile, non-oil re-exports expanded 53.3% in August from 51.3% in July, with electronics re-exports rising 68% and non-electronic re-exports growing 32.9%.