Asia Pacific: Trade outlook faces headwinds

Export momentum across the Asia Pacific region eased to 23.5 percent year-over-year in July, as low base effects fade, according to Oxford Economics.

Looking ahead, the firm expects export momentum to continue to moderate, given global supply disruptions and lower import demand from key trading partners amid tighter COVID-19-related restrictions. However, underlying global external demand remains solid and a gradual easing of global supply chain disruptions later this year bode well for regional exports in 2022.

Regional goods exports in U.S.-dollar terms remained strong in July, rising 23.5 percent year-over-year, with strong year-over-year growth recorded across the region, reported Oxford Economics. That said, this represented an easing in momentum from 36.6 percent year-over-year in the second quarter as the boost from 2020’s low base effects is fading. Indeed, China’s goods exports rose 19.3 percent year-over-year in July following 30.7 percent year-over-yea