Singapore: Coronavirus, US-China weighs on trade prospects – UOB
UOB Group’s Economist Barnabas Gan assessed the latest trade data in Singapore.
Key Quotes
“Singapore’s non-oil domestic exports (NODX) fell 4.5% y/y in May 2020, as the decline in non-electronic exports outweighed the gains in electronic exports. On a month-on-month seasonally adjusted basis, NODX fell by a similar pace of 4.5%. Total trade continued to contract for the third straight month by 25.0% y/y.”
“The fall in NODX was led by a decline in non-electronic exports (-8.8% y/y), seen from petrochemicals (-31.2%), electrical machinery & apparatus (-28.8%) and chemicals (-18.4%). Pharmaceutical exports fell 7.0% y/y on the back of a high base year effect. Electronic exports (+12.5% y/y) was however supported by the growth in disk drives (+23.6% y/y) and integrated circuits (+22.5% y/y).”
“The uncertainty surrounding the length and severity of COVID-19, as well as the emergence of renewed US-China tensions continue to cloud Singapore’s trade prospects. We keep to our outlook for NODX to contract by 1.0% with downside risks should the COVID-19 pandemic becomes more severe and protracted.”
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
