Export growth in many countries in the region experienced substantial contraction in Q2 2023. In China, the modest growth in goods exports in Q1 2023 was driven by gains in the global market share for industrial machinery, petrochemical products and automotives. However, exports dropped in the second quarter following the continued slowdown in global demand.
In other countries, exports registered a decline due to a slowdown in demand for goods exports from major trading partners exacerbated by limited export diversification (Figure 1). For example, the Philippines recorded a decline in exports in the first and second quarter of this year owing to its heavy reliance on electronics products and dependence on the United States and China as major trading partners. Indonesia recorded a marginal contraction in exports in the same period due to China’s weaker-than-expected growth momentum and lower commodities prices. Export growth also contracted in Malaysia owing to weaker economic recovery of China, its major trading partner, and a slowdown of demand from the United States.
