Export Product Troubles Reveal Cracks In Global Economy
The latest figures from Singapore's export market have come in, and it proved that the US-China trade war has troubled local economies.
According to the BBC, Singapore's exports showed that the impact on Asia was far worse than previously imagined. The exports were shown to have fallen for the second month in a row, slowing down by 17.3% during the month of June compared to years ago.
The fall comes just a week after it was revealed that Singapore's growth suffered a 3.4% decline in growth compared to the last quarter. It is significant considering the city-state has been one of the most trade-dependent economies in the world. It has also earned its status as a "global indicator" for how trade is doing because of this.
There is a legitimate worry among analysts in the region that Singapore and its numbers are signs that this is just the beginning of more bad news for the sector.
It's a trade war effect, some observers suggested, and that the evidence is there to show that Asia's economies have been hit hard by the US-China trade war.
In South Korea, the exports are shown to have suffered their biggest fall in three-and-a-half years in June. The data also showed that the fourth-largest economy in Asia suffered a 13.5% plunge in June from a year earlier, Reuters reported. This was more than the 12% expectation that analysts had hoped for, and was the fastest fall recorded for an economy since January 2016.
The fall squashed any hope that the government had for a pick-up in economic growth after the first quarter also showed a big decline. The US and Chinese leaders have been trying to jumpstart trade talks directed at ending the trade dispute, and this has been affecting economies in Asia for a long time. South Korea's economy was just shown to be as vulnerable as every country's in the region.
There is hope according to Oh Chang-sob, an economist at Korea Investment and Securities. It was expected that the G20 results were better than most have hoped for. There is also a distinct possibility that it was more political than practical, and the local economy will eventually have to brace itself for more.
Indonesia and India are also having a bad time. Indonesia counted China among its biggest trading partners and had an 8.98% decline in exports. Indian exports, meanwhile, suffered a decline of 9.7%, the first time that it experienced such a fall in nine months.