Singapore’s exports plunge more than forecast

Shipping containers stand at the Qingdao Qianwan Container Terminal in this aerial photograph taken in Qingdao, China, on May 7, 2018. (Bloomberg pic) 

SEOUL: Singapore’s exports plummeted in June amid a worsening trade war, spelling more bad news for the city state’s economy.

Non-oil domestic exports contracted 17.3% from a year ago after falling a revised 16.3% in May, Enterprise Singapore said in a statement on Wednesday.

That was worse than the median estimate of a 9.6% decline in a Bloomberg survey of economists.

The trade-reliant economy took a sharp downturn in the second quarter, prompting analysts to downgrade growth forecasts for this year and predict a possible recession.

Exports have been weakening since last year as a technology boom waned, but the outlook worsened considerably in 2019 amid a US-China trade war, which is weighing on China’s economy.

Electronics exports plunged 31.9% in June from a year ago after dropping 31.6% in May. The biggest contractions in overall shipments were to Hong Kong (-38.2%), Japan (-23.2%) and South Korea (-22.7%).