Download PDFForeign trade: Dec18 trade deficit was a sizeable US$1.1bn and in line with consensus expectation. Exports were growing at -4.9% rate mom and imports -9.6% mom. Year wise, trade booked a US$8.6bn deficit FY18 (-172% yoy) on the back of NOG trade deterioration. Trade deficit improved from Nov18's figure of US$-1.99bn supported by enhancement in the OG trade (+143% mom) as reduction in OG imports materialised due to both price and volume cuts. Imports cutback only appeared in raw materials (-13.5% mom) while both capital and consumer goods remained increasing. ( CEIC , BPS).
Comment: Trade update should bring negative sentiment to market as caution had been continuously laid on CA, which was formed majorly by trade balance. We continue to believe that trade deterioration was not an impact of an overheating economy and thus can be balanced in due time although adjustment would take time and consequence notably to the investment side. More thorough analysis will be featured in our report today.
Sumber : IPS RESEARCH
powered by: IPOTNEWS.COM
