Singapore exports down 15.9% y/y in May - ING

Robert Carnell, Chief Economist Head of Research, Asia-Pacific at ING Bank, noted that Singapore’s “non-oil domestic exports (NODX) fell 15.9% y/y in May. An erratic spike from pharmaceuticals stopped this being an even worse figure”. 

Key Quotes:

“By product, electronics was again, far and away the worst performer, falling 31.4%YoY in May. This reinforces a point we have made repeatedly, but which is worth repeating. The trade war is damaging Asia, but it is the global technology slump (of which China's technology war with the US is only a recent part) which is doing the most damage to exports in the region. 

Put another way, even on the very unlikely assumption of an all-encompassing trade agreement at the G20 with President's Xi and Trump, and the immediate removal of tariffs, electronics exports are going to continue to be weak. 

Without the outsize 28.5%YoY rise in pharmaceuticals, which was worth a swing of about S$1.32bn and stopped the total NODX figure from coming in at -23.5%, which it would have done on a flat pharmaceuticals’ outcome.”