Stronger 1Q GDP reinforces 2011 GDP forecast of 7%
This is higher than the official forecast range of 4-6 per cent, said DBS Vickers.
According to their report, this is despite near-term growth concerns from high oil and commodity proces as well as impact from Japan.
DBS Vickers' economist believes that with the 8.5% YoY number, market consensus for 2011 GDP forecast that is currently within the official range of 4-6% will shift upwards.
This is despite an anticipated weak 2Q due to a high base effect, high oil/commodity prices and the disaster in Japan. Growth is expected to pick up again in 2H.