Malaysia’s GDP growth forecast lowered significantly

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malaysia-petronas-twin-towersThe Malaysian Institute of Economic Research has revised downwards Malaysia’s economic growth forecast to 4.8 per cent for 2013 from the 5.6 per cent estimated earlier, news agency Bernama reported on July 26.

The lower growth forecast was due to external factors such as a weak global recovery, China’s economic slowdown, moderate expansion in ASEAN, financial market volatility and the tightening of financial conditions.

“Somehow, our engine of growth in the external sector is slowing down. Our exports were declining quite substantially, especially in April and May, while trade balance is very small,” the institute’s executive director Zakariah Abdul Rashid said at a press conference.

Exports needed to come back, with export diversification and improved market access, he added.

“Strategic reform initiatives and transformation programmes need to proceed or start to be implemented. If we want to become a high-income country, we should be moving towards an innovation-driven economy,” he said.

As for other factors, the institute expects inflation in Malaysia to be at 2.5 per cent and unemployment to be at 3.2 per cent in 2013, while the overnight policy rate is expected to remain at 3 per cent.

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Reading Time: 1 minute

The Malaysian Institute of Economic Research has revised downwards Malaysia’s economic growth forecast to 4.8 per cent for 2013 from the 5.6 per cent estimated earlier, news agency Bernama reported on July 26.

Reading Time: 1 minute

malaysia-petronas-twin-towersThe Malaysian Institute of Economic Research has revised downwards Malaysia’s economic growth forecast to 4.8 per cent for 2013 from the 5.6 per cent estimated earlier, news agency Bernama reported on July 26.

The lower growth forecast was due to external factors such as a weak global recovery, China’s economic slowdown, moderate expansion in ASEAN, financial market volatility and the tightening of financial conditions.

“Somehow, our engine of growth in the external sector is slowing down. Our exports were declining quite substantially, especially in April and May, while trade balance is very small,” the institute’s executive director Zakariah Abdul Rashid said at a press conference.

Exports needed to come back, with export diversification and improved market access, he added.

“Strategic reform initiatives and transformation programmes need to proceed or start to be implemented. If we want to become a high-income country, we should be moving towards an innovation-driven economy,” he said.

As for other factors, the institute expects inflation in Malaysia to be at 2.5 per cent and unemployment to be at 3.2 per cent in 2013, while the overnight policy rate is expected to remain at 3 per cent.

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