Philippines likely recorded double-digit import growth again in February

The Philippines is likely to have recorded a double-digit import growth in February 2016, according to market expectations, noted DBS Bank. However, the import growth is expected to come in lower from January’s 30/8% y/y. Imports are expected to have surged in January because of frontloading of investments before the elections in 2016. However, imports are expected to have risen 12% in February 2016.

Capital goods imports need to be focused on. The surge in past year continues to show supportive investment growth in the Philippines economy, according to DBS Bank. This is expected to continue in 2016 and help push the economic growth to the 6% territory. However, the outcome of May elections is important and it is vital to keep a watch on how demand performs in the third quarter, said DBS Bank. Before May, growth in investment is likely to moderate and then rebound again afterward, noted DBS Bank.