For years, Singapore has been a proxy for world trade. So when Singapore delivered an uptick in its economy last month, thanks to an increase in electronics exports, especially to its Asian neighbours, it was encouraging.
The city state was not alone. South Korea had a fine December, with exports up 6.4 per cent. The month before, Asia (excluding Japan and China) recorded a 7.3 per cent rise in exports. Indeed, over the course of 2016, exports from most emerging markets registered a gradual improvement that reflected more than just a bounce in commodity prices, according to Goldman Sachs.
The strong end to 2016 for Asian exporters is raising some hopes that world trade, and industries dependent on it, such as shipping, might finally reverse a multiyear downturn both in terms of volume and value.