Singapore’s economy takes a hard hit

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Singapore’s exports plunged to a six-year low in June, the latest in a series of negative indicators showing China’s slowdown and the trade war with the US are wreaking havoc on the economies of Asia’s trade hubs.

The city state’s economy is considered a bellwether for the region as it is a transshipment hub, meaning that the goods that pass through its ports are generally bound for other final destinations. So if trade in Singapore is weak, it usually points to slowing demand elsewhere – often China, which reported its lowest quarterly economic growth on record on July 15.

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. 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 GDP growth reported by Singapore for the second quarter of 2019, the trade figures make for grim reading.

Analysts said that Singapore’s the export picture should remain bleak in coming months, in line with a lack of progress on US-China trade negotiations, heightened global economic uncertainty and signs that using trade protectionism as a weapon of foreign policy is spreading.

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Singapore’s exports plunged to a six-year low in June, the latest in a series of negative indicators showing China’s slowdown and the trade war with the US are wreaking havoc on the economies of Asia’s trade hubs. The city state’s economy is considered a bellwether for the region as it is a transshipment hub, meaning that the goods that pass through its ports are generally bound for other final destinations. So if trade in Singapore is weak, it usually points to slowing demand elsewhere – often China, which reported its lowest quarterly economic growth on record on July 15. Singapore’s...

Reading Time: 1 minute

Auto Draft

Singapore’s exports plunged to a six-year low in June, the latest in a series of negative indicators showing China’s slowdown and the trade war with the US are wreaking havoc on the economies of Asia’s trade hubs.

The city state’s economy is considered a bellwether for the region as it is a transshipment hub, meaning that the goods that pass through its ports are generally bound for other final destinations. So if trade in Singapore is weak, it usually points to slowing demand elsewhere – often China, which reported its lowest quarterly economic growth on record on July 15.

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. 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 GDP growth reported by Singapore for the second quarter of 2019, the trade figures make for grim reading.

Analysts said that Singapore’s the export picture should remain bleak in coming months, in line with a lack of progress on US-China trade negotiations, heightened global economic uncertainty and signs that using trade protectionism as a weapon of foreign policy is spreading.

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