
Chart of the Day: Is the port of Singapore under threat from China's trade slowdown?
High growth is a thing of the past.
The world's second-busiest port is expected to book positive growth in container and tonnage throughput in 2016, although growth over coming years will slow as China's economy sputters.
According to BMI Research, the port of Singapore is expected to recover from its troublesome performance in 2015 and record positive growth this year, as sizeable Asian trade and improved European demand will benefit the port's well established shipping connections and highly developed infrastructure.
However, with the Chinese economy slowing down, high growth at Singapore's port is not expected.
"The key risk to outlook for Singapore generates from the port's role as a transhipment hub with reliance on external demand making it susceptible to adverse global economic developments, evident from the 2009 contraction in throughput volumes following the economic crisis. Additionally a sharper than anticipate decline in China's economic growth will also negatively affect activity levels the port of Singapore,” he said.