Demand for Singapore, Asian Exports to Rise Next Year
Title
Demand for Singapore, Asian exports to rise next year
INTRODUCTION
There is a number of reports in various channels recently which shows that Asia is going to be one of the major beneficiary from an hike in Demand from US and European Economies. However its not understood if its still dependent on these two traditional markets to move ahead with its export growth capability and earn foreign exchange to sustain their economies. Exports from East Asian countries picked up very quickly after the slowdown during 2007-2009 and expanded 30% in the year 2010, 15% in the year 2011 but contraction happened to the extent so much so that growth was only 2.3% in 2012. Countries like Japan and Singapore posted very solid increase in export figures in the last quarter of 2013,fuelled by growing US demand. This increase also is followed by reports of very broad recovery in Asian manufacturing since the last two Quarters of 2013.(Marshal , 2013)
Analysts at global research giant J.P. Morgan Chase indicated that increased demand on the part of EU and USA would fuel demand for traditional Asian produced commodities in the sectors such as Automobiles and Electronics. They were of the opinion that activities in traditional Asian sectors such as electronic equipments , Automobiles etc are looking up to a great extent. these sectors account for almost 1/3rd of Asias exports. At the same time these reports also shows that non traditional sectors are also moving up quite considerably. These sectors include non-telecommunication technology equipments, Tablets, PCs and Smartphones from korea and China.
DISCUSSION
Economist Gareth Leather was of the opinion that Asias most export-oriented economies – Hong Kong, Singapore, South Korea and Taiwan will do well in the coming years as its a sign of the things to come in the near future.(capitaleconomics.com,2013)
On the other hand some economist and analysts were of the opinion that US demand is unlikely to drive Asian growth as much as it used to in the past. For example , Asias reliance on the US Export trade has declined as trade has grown within the region and within the economies and especially with China.
A lot of Asian exports from smaller countries are wired to the US and EU through CHINA. The increase in the Singaporean exports has happened on the back of a pickup in Chinese demand because China has started importing from within Asian economies to export more as global demand recovered considerably.
According to ADB, EAST ASIAN Exports fell to 13.6% in 2012 down from 23.8% in 2000. However on the brighter side Exports to CHINA has increased from a meagre 9.7% to 23% within the same period. Two Major countries in ASIA , CHINA and INDIA increased their bilateral trade from a small