Malaysia: Exports in March contract again
May 6, 2016
Exports in USD terms fell 10.7% annually in March, following the 7.5% contraction tallied in February. The contraction was more severe than analysts had expected. The result marked the 17th consecutive month of contraction, as global demand for key Malaysian exports dwindles. Meanwhile, imports declined 15.8% in March, which was also a more severe contraction than the 12.0% fall recorded in the previous month. The strong 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 contraction, followed by crude petroleum exports.
The trade balance widened from a USD 1.8 billion surplus in February to a USD 2.7 billion surplus in March. The 12-month moving sum of the trade balance increased from USD 23.2 billion to USD 23.8 billion in March.
Author: Robert Hill, Economist