Retail sales full-year growth to hit 6%: analyst

In April, sales expanded by 12.1% YoY.

Following an above-expected growth in April of 12.1% YoY, retail sales will likely achieve a full-year growth of 6%, UOB said in a report.

The analyst said it expects a full-year expansion given the positive economic outlook, re-opening trends and tightening labour market in its projection. 

“We also keep the view that potential front-loading of consumer purchases this year could support retail sales ahead of the higher GST rate adjustment due in 2023,” UOB added.

The expert, however, warned that the expected growth in the sector may be dampened by a higher inflation outlook brought on by a protracted Russia-Ukraine conflict.

But according to UOB, this negative impact can still be offset by Singapore's transition to the endemic state and increase in private spending.

Higher inflation rates are expected to lift retail prices for the rest of the year, and “eat into household’s disposable income, thereby reducing their spending on other items,” said UOB.