Second quarter GDP slumps Asian economies

Singapore’s preliminary second quarter GDP growth came in below analysts expectations at 2.5 percent year on year, against a median forecast growth rate of 2.7 percent, notes from UOB Kay Hian revealed.

The first quarter GDP was revised down to 2.5 percent from 2.7 percent for the year.

In the second quarter of this year, manufacturing growth remained firm at 8 percent year on year and services sector growth strengthened to 1.7 percent while construction shrank to negative 5.6 percent.

UOB says after seasonal adjusted annualized basis, GDP has grown only 0.4 percent with a median forecast of 1.1 percent, for the second quarter. This is actually a rebound from the revised negative 1.9 percent seen in the first quarter.

Analysts expect the upcoming week’s June non-oil domestic exports data will draw some attention to the island-nation’s economic growth.

Meanwhile, China’s data will stay in focus for the early part of next week as the second quarter GDP figures will likely see a boom in the retail sales segment there.

In Indonesia, the central bank there Bank Indonesia (BI) is the only major Asia-Pacific central bank with a monetary policy decision this week, which will happen on Thursday, 20 July.

BI is expected to keep policy unchanged and UOB says that they are watching if the statement may turn hawkish in the near term.

This comes after Malaysia’s central bank, Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 3.00 percent and is remaining steady on other monetary policy features.