Imports are likely to grow percent to 9 percent this year on sustained domestic demand, although such increase would be slower than the 18.4-percent expansion a year ago, DBS Bank of Singapore said Monday.
The bank said in a report the sluggish import growth figures in the past two months simply reflected high base effects. “Despite the last two months’ data, imports are still on course to post growth of some 8 percent to 9 percent this year. Not quite the 18.4 percent recorded last year, but it will match the 8.7 percent recorded in 2015,” DBS said.
DBS said export and import growth in May would likely to come in at 15.7 percent and 2.2 percent, respectively. Imports fell 0.1 percent in April.
“Some market participants are beginning to wonder if this was a clear sign of a marked moderation in domestic demand. These participants forgot that import growth averaged 40 percent [YoY] last year ahead of the general elections… As such, it is best to not read too much into the import data in April to May,” DBS said.