In one line: Festive demand-driven increases unwind.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Headline inflation in Taiwan nosedived to 2.1% in March, after jumping to 3.1% in February…
- …As positive Lunar New Year demand effects reversed sharply; food base effects helped too.
- Food prices should drag more on the headline, but upward risks from energy and services have risen.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Festive spending boosts Singaporean retail sales growth in February
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Singaporean retail sales growth jumped to 8.4% in February, from 1.6% in January…
- …Bolstered by Lunar New Year festive demand falling in February, compared with January in 2023.
- We still expect a gradual moderation in retail sales this year as wage and employment growth slows.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- We now see GDP growth in Singapore rising to 2.6% in Q1, after 2.2% in Q4…
- …Supported by the ongoing recovery in external demand and higher tourist arrivals.
- We’ve also upgraded our 2024 growth forecast to 2.2%, from 1.7%, underpinned by healthier trade.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Singaporean headline inflation increased to 3.4% in February, from 2.9%, on festive demand…
- …But, with goods disinflation well-behaved and one-off increases factored in, inflation is likely to fall.
- In Malaysia, new water tariffs caused headline inflation to rise in February, to 1.8% from 1.5%.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Lunar New Year demand boosts headline CPI in Singapore
New tariff adjustment mechanism pushes up utilities inflation in Malaysia
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Anticipated hike to electricity tariffs spooks the CBC into a surprise hike.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In an unexpected move, the Taiwanese central bank raised its discount rate to 2.000% yesterday…
- …Its main worry appears to be the impending rise in electricity tariffs, likely to come in April.
- The improving economic outlook has given the CBC space, but this hike is likely 'one -and- done'.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Malaysian export growth slumps in February on seasonal effects
Singapore's February exports hide continued recovery in electronics
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Singaporean exports fell into the red in February; blame Lunar New Year seasonal distortions...
- ...Export growth will likely resume its recovery path, albeit at a more gradual pace for most of H1.
- Malaysian export growth slowed in February, dragged down by a sharp drop in re-exports.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Indonesian exports disappointed greatly in February, with demand from China faltering again.
- The trade surplus has plunged to a four-year low; consensus for the 2024 current account is too rosy.
- We see Vietnam’s Q1 GDP print falling well short ofexpectations, at 5.4%, down from 6.7% in Q4.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
In one line: Seasonal effects aside, the export growth outlook remains positive.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Taiwanese export growth tanked in February on the Lunar New Year lull and weak Chinese demand...
- …While ASEAN’s status as an export destination improved, benefiting from firms’ China+1 strategy.
- Existing labour-market tightness should make further services disinflation a lengthy process.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Seasonal impact from the Lunar New Year results in a jump to services inflation.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Ringgit weakness worries BNM, but its opting for non-rate measures.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Seasonal effects aside, Singaporean consumer demand remains healthy
Outright deflation in Thailand should be over in a few months
The favourable January food price drag in the Philippines is unwinding partially
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Consumer demand in Singapore remains healthy, despite the Lunar New Year hit to Jan. retail sales.
- The rebound in Philippine food inflation won’t last, but it pushes back the likely first rate cut to June.
- Deflation in Thailand has finally turned a corner; expect to see a muted return to the black in Q2.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia