ID :
19774
Tue, 09/16/2008 - 19:28
Auther :
Shortlink :
http://m.oananews.org//node/19774
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MALAYSIA GDP TO INCREASE SLIGHTLY TO 5.6, SAYS ADB
BANGKOK, Sept 16 (Bernama) -- Malaysia's GDP growth this year is expected to increase slightly to 5.6 percent from an initial estimate of 5.4 percent, the Asian Development Bank (ADB) said in a new major report released Tuesday.
The Asian Development Outlook 2008 Update said growth for 2009 was marked
down to 5.3 percent on expectation of continued softness in the external
environment.
With the global economy weakening and expected to remain lacklustre in much
of 2009, the country's economic growth is likely to slow both this year and next
relative to the trend of the past five years.
ADB said projections for the period assume that political uncertainties
would not have a significant impact on economic policies, that the Government
would bring the fiscal consolidation program back on track after slippage this
year, and that monetary policy would remain prudent in containing inflation
pressures.
"A still-sharper slowdown in economic growth is likely to have been
prevented by the temporary fiscal stimulus and an accommodative monetary policy,
and by the support from commodity exports," the Manila-based multilateral
development bank said.
In the report, ADB said developing Asian economies would revert to a more
moderate growth outlook of 7.5 percent this year and 7.2 percent next year
after posting its fastest growth of nine percent in nearly two decades in
2007.
ADB said economic growth in China would moderate in 2008 and 2009, but it
will still remain among the world's fastest growing economies. It's estimated to
moderate to 10.0 percent this year from 11.9 percent in 2007, the highest in 13
years, and ease to 9.5 percent in 2009 on the back of a reduced trade surplus
and slower growth in investment as a result of the global economic
downturn.
India will also experience a marked slowdown, ending its run of five
consecutive years of very high growth. ADB forecast that India's growth rate
to decrease to 7.4 percent in 2008 and decelerate further to 7.0 percent in
2009.
Among South-East Asian countries, Laos will have the highest growth rate
this year at 7.5 percent, followed by Cambodia and Vietnam (each 6.5 percent),
Indonesia (6.2 percent), Thailand (5.0 percent) and the Philippines (4.5
percent).
The report also highlighted that a supply shortage will remain a dominant
issue in global commodity markets.
"While oil prices are likely to soften somewhat in the short run, they will
remain high and volatile in the long run. High oil prices are here to stay. And
as food prices are heavily influenced by oil prices, high food prices are here
to stay as well," said Ifzal Ali, Chief Economist of ADB.
The Asian Development Outlook 2008 Update said growth for 2009 was marked
down to 5.3 percent on expectation of continued softness in the external
environment.
With the global economy weakening and expected to remain lacklustre in much
of 2009, the country's economic growth is likely to slow both this year and next
relative to the trend of the past five years.
ADB said projections for the period assume that political uncertainties
would not have a significant impact on economic policies, that the Government
would bring the fiscal consolidation program back on track after slippage this
year, and that monetary policy would remain prudent in containing inflation
pressures.
"A still-sharper slowdown in economic growth is likely to have been
prevented by the temporary fiscal stimulus and an accommodative monetary policy,
and by the support from commodity exports," the Manila-based multilateral
development bank said.
In the report, ADB said developing Asian economies would revert to a more
moderate growth outlook of 7.5 percent this year and 7.2 percent next year
after posting its fastest growth of nine percent in nearly two decades in
2007.
ADB said economic growth in China would moderate in 2008 and 2009, but it
will still remain among the world's fastest growing economies. It's estimated to
moderate to 10.0 percent this year from 11.9 percent in 2007, the highest in 13
years, and ease to 9.5 percent in 2009 on the back of a reduced trade surplus
and slower growth in investment as a result of the global economic
downturn.
India will also experience a marked slowdown, ending its run of five
consecutive years of very high growth. ADB forecast that India's growth rate
to decrease to 7.4 percent in 2008 and decelerate further to 7.0 percent in
2009.
Among South-East Asian countries, Laos will have the highest growth rate
this year at 7.5 percent, followed by Cambodia and Vietnam (each 6.5 percent),
Indonesia (6.2 percent), Thailand (5.0 percent) and the Philippines (4.5
percent).
The report also highlighted that a supply shortage will remain a dominant
issue in global commodity markets.
"While oil prices are likely to soften somewhat in the short run, they will
remain high and volatile in the long run. High oil prices are here to stay. And
as food prices are heavily influenced by oil prices, high food prices are here
to stay as well," said Ifzal Ali, Chief Economist of ADB.
