Economists: Exports likely to continue contraction

MIDF Research, in its report, expected exports to contract further at 8.3% y-o-y.

.

PETALING JAYA: Exports are expected to continue their contraction this year on weaker global demand arising from the Covid-19 pandemic, according to economists.

“I am not surprised at the latest trade data. Weak global demand and weak commodity prices will affect exports as most of our trading partners are still battling with the Covid-19 outbreak, ” Socio-Economic Research Centre’s executive director Lee Heng Guie (pic below) told StarBiz.

Although China has reopened its economy, demand is still weak generally. The major exports such as electrical and electronics (E&Es), palm oil and crude oil are still weak, ” he said.