Singapore’s economic downturn continues as US-China trade war wreaks havoc on Asia export hubs
- The city state is considered to be a bellwether for the region and its trade malaise is indicative of weak demand elsewhere and bad news for China’s economy
- Singapore’s total non-oil exports fell 17.3 per cent in June, adding to the surprise 3.4 per cent collapse in gross domestic product reported last week
Singapore’s exports plunged to a six-year low in June, the latest in a series of brutal indicators showing China’s slowdown and the trade war with the United States are wreaking havoc on the economies of Asia’s trade hubs.
Singapore’s total non-oil exports fell 17.3 per cent in June, following a 16.3 per cent decline in May, driven by a 31.9 per cent slump in electronics exports last month. Imports fell by 4.8 per cent, while total trade fell by 7.2 per cent from a year earlier. Singapore is more dependent on trade than any other nation apart from Luxembourg, according to the World Bank, an indicator of the severity of the decline.
Non-oil exports from Singapore to China dipped 15.8 per cent last month, while those to Hong Kong fell 38.2 per cent – with many of the goods bound for Hong Kong eventually finding their way to mainland China. In May, exports to China had fallen 23.3 per cent and to Hong Kong by 25.7 per cent.
Added to the surprise 3.4 per cent collapse in gross domestic product (GDP) growth reported last week by Singapore for the second quarter of 2019, the trade figures make for grim reading.
The fact that Wednesday’s data release showed that primary chemicals exports to China slumped 50.5 per cent in June is also bad news for China’s manufacturing base, which has been under severe pressure in recent months.