KUALA LUMPUR: Exports are expected to post a strong growth in July mostly due to base effects said economists.
The International Trade and Industry Ministry will release the details today. (WEDNESDAY)
Standard Chartered Bank economist Edward Lee expects July trade to rebound after a subdued performance in June.
Total trade rose by only 7 per cent in June, likely on account of the holidays, after averaging a 25 per cent year-on-year increase from January-May.
“We expect both electronics and commodity export growth to have remained robust.”
Brent prices rose about 35 per cent year-on-year in July (in ringgit terms), likely supporting the export performance.
Imports may have similarly rebounded and risen 14.7 per cent year-on-year after having slowed by 3 per cent in June.
RAM Ratings, meanwhile, expects Malaysia’s export growth to rebound to 23.1 per cent in July, or more than double the 10 per cent growth in June.
In its report yesterday, rhe ratings agency cited the strong export growth to be underpinned by the anticipated improvement in domestic industrial output in line with stronger demand from China, Singapore and Japan.
As for imports, RAM expects growth to accelerate to 20 per cent, although still lagging behind exports for the third consecutive month.