IMF sets Malaysia’s 2014 growth at 4.9%
In a recent report on the world economy, the International Monetary Fund (IMF) gave its real growth projections — taking into account inflationary effects — for the Malaysian economy for 2013 at 4.7 per cent with an improvement in 2014 to 4.9 per cent.
“In the Association of South-East Asian Nations economies, solid domestic demand should support growth, particularly in Malaysia and the Philippines,” the IMF said. The emerging economies, taken together, are expected to grow at 5.9 per cent in 2012 and 6.2 per cent in 2014, the report said.
The IMF’s growth targets for Malaysia are higher than the World Bank’s estimates of 4.3 per cent growth in 2013 and 4.8 per cent in 2014.
Bank Negara Malaysia in August revised downwards its GDP forecast to 4.5-5 per cent for 2013, from 5-6 per cent, blaming it on prolonged weakness in the external environment.
With regard to consumer prices, inflation is expected to stay at a moderate 2 per cent this year but rise to 2.6 per cent the next year, according to the report. The price rise may be an impact of subsidy rationalisation efforts from the government towards fiscal consolidation.
However, a major downside risk for the region is a synchronised global slowdown, which would take a heavy toll on the region’s export-dependent economies, IMF said.
Malaysia, among all other emerging markets, faced unprecedented volatility in capital inflows during the past decade.
“In 2011, policymakers worried that excessive inflows might cause overheating, but recently concerns have shifted to the disruption that might result from sudden stops as interest rates in the US normalise,” the IMF noted.
“Policymakers need to strike a balance between supporting demand and guarding against financial stability risks,” the IMF said.
In a recent report on the world economy, the International Monetary Fund (IMF) gave its real growth projections — taking into account inflationary effects — for the Malaysian economy for 2013 at 4.7 per cent with an improvement in 2014 to 4.9 per cent. “In the Association of South-East Asian Nations economies, solid domestic demand should support growth, particularly in Malaysia and the Philippines,” the IMF said. The emerging economies, taken together, are expected to grow at 5.9 per cent in 2012 and 6.2 per cent in 2014, the report said. The IMF’s growth targets for Malaysia are higher than...
In a recent report on the world economy, the International Monetary Fund (IMF) gave its real growth projections — taking into account inflationary effects — for the Malaysian economy for 2013 at 4.7 per cent with an improvement in 2014 to 4.9 per cent.
“In the Association of South-East Asian Nations economies, solid domestic demand should support growth, particularly in Malaysia and the Philippines,” the IMF said. The emerging economies, taken together, are expected to grow at 5.9 per cent in 2012 and 6.2 per cent in 2014, the report said.
The IMF’s growth targets for Malaysia are higher than the World Bank’s estimates of 4.3 per cent growth in 2013 and 4.8 per cent in 2014.
Bank Negara Malaysia in August revised downwards its GDP forecast to 4.5-5 per cent for 2013, from 5-6 per cent, blaming it on prolonged weakness in the external environment.
With regard to consumer prices, inflation is expected to stay at a moderate 2 per cent this year but rise to 2.6 per cent the next year, according to the report. The price rise may be an impact of subsidy rationalisation efforts from the government towards fiscal consolidation.
However, a major downside risk for the region is a synchronised global slowdown, which would take a heavy toll on the region’s export-dependent economies, IMF said.
Malaysia, among all other emerging markets, faced unprecedented volatility in capital inflows during the past decade.
“In 2011, policymakers worried that excessive inflows might cause overheating, but recently concerns have shifted to the disruption that might result from sudden stops as interest rates in the US normalise,” the IMF noted.
“Policymakers need to strike a balance between supporting demand and guarding against financial stability risks,” the IMF said.
