The Chinese economic slowdown, uncertainty over US-China trade talks, and disruptions around the Lunar New Year holidays have soured exports numbers this year, especially in trade-reliant economies like Singapore’s. The city state’s critical electronics sector has contracted for 15 of the past 16 months after an unexpected surge across the region for much of 2017.
Weaker Chinese demand has also resulted in exports to the US outpacing those to China for the first time in more than seven years.
Economists are counting on a recovery in Chinese demand, helped by government stimulus measures, which should filter through to the region’s economies. China’s economy grew a better-than-expected 6.4% in the first quarter from a year ago, matching the previous three months’ pace, government data showed Wednesday. The Bloomberg survey median had called for a 6.3% gain.
