Malaysia: Contraction in exports eases in April

Exports in USD terms fell 3.6% annually in April, following the 10.7% contraction tallied in March. The drop was more severe than analysts had expected. The result marked the 18th consecutive month of contraction, as global demand for key Malaysian exports dwindled. Meanwhile, imports declined 7.3% in April, which was a less severe contraction than the 15.8% fall recorded in the previous month. A strengthening USD is decreasing the value of Malaysian exports registered in Malaysian ringgits. According to the National Statistical Institute, liquefied natural gas products witnessed the most severe drop, followed by crude petroleum exports.

The trade balance narrowed from a USD 2.7 billion surplus in March to a USD 2.3 billion surplus in April. The 12-month moving sum of the trade balance increased from USD 23.8 billion to USD 24.3 billion in April.

FocusEconomics Consensus Forecast panelists expect exports to fall 2.6% in USD terms in 2016. Imports are expected to decline 2.6% in 2016, thus pushing the trade surplus to USD 24.6 billion. For 2017, the panel expects exports to grow 6.4%. With imports expected to rise 5.8% in 2017, panelists see the trade surplus rising to USD 26.9 billion.