Singapore still enjoys bigger trade surplus despite export fall

SINGAPORE (Oct 18): While Singapore registered a decline in exports by 1.3% y-o-y for the month of September, Maybank Kim Eng is highlighting that the steeper 6.2% contraction in imports has led to “this year’s highest trade surplus” of  more than $7.06 billion despite the total drop in trade.

According to Maybank’s team of analysts, the recent widening of 3Q trade surplus (over 18.9% y-o-y and 5.3% q-o-q) to over $17.9 billion implies that net external demand was “less of a drag” on 2Q gross domestic product (GDP) than implied by the advanced estimate.

“Exports declined for the ninth consecutive quarter but by a slower pace of -3.4% y-o-y in 3Q 2016, while the decline in imports matched the previous quarter’s pace.  This resulted in a slightly wider trade surplus,” explains the team in a Monday report.

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