PUTRAJAYA, 28 May 2009:The government has revised downwards the country’s GDP (gross domestic product) forecast for 2009 to between -4% and -5% for 2009 from earlier projection of -1% to 1% after 1st quarter GDP shrank a worst-than-expected 6.2%.
Prime Minister Datuk Seri Najib Razak said on 28 May the wider contraction projection was due to a steeper decline in exports, coupled with a decline in private investment.
“External demand plummeted more than expected,” Najib said.
On whether the current GDP projections factored in the worst case scenario, he said the forecast was based on a realistic view of current conditions, although he said it would also depend on whether the US and Europe economies worsened.
He added, however, Malaysia’s economy was expected to recover by year-end, and the government was hopeful 4th quarter ’09 would show positive growth.
Read more here.
This article first appeared on Thursday, 28 May 2009 in www.theedgemalaysia.com. Used with permission.