Confidence builds for strong recovery in global trade

Global trade has put in a robust recovery on the back of brisk demand from the US and in part from Europe, according to a raft of indicators and higher business volume seen by shipping and logistics professionals.

After the 2008 crisis when the collapse of Lehman Brothers nearly sank the world economy and the 2010 euro-zone currency pushed the European Union to the brink, trading nations have been enjoying a pickup. Singapore yesterday reported strong growth last month in non-oil domestic and non-electronic exports to China, the United States and the EU.

Of the global picture, Raymond Yeung, senior economist at ANZ Bank, said: "Recent trade data indeed suggests a positive outlook for the second half of this year. Demand from the US is coming back. Overall, the second half is expected to be better than the first half."

The strength of the trade rebound can be gleaned from the fact that second-quarter gross domestic product in the US expanded at a brisk 4 per cent.

The US and the EU registered growth in July non-oil and non-electronic imports from Singapore of 24.7 per cent and 33.8 per cent, respectively, year on year.

China, which said the value of total exports hit a 15-month high last month, imported 8.4 per cent more non-electronic and non-oil goods from the city state during the same time.