KUALA LUMPUR, 16 Oct 2008: The Malaysian Institute of Economic Research (MIER) is adjusting upwards its estimate for the country’s gross domestic product (GDP) growth this year to 5.3% from 4.6% previously.
The upward revision was a result of the higher than expected domestic growth during the first half of 2008 and the resilient US economy in the early part of the year.
Nevertheless, it is likely that growth will deteriorate late this year as the Malaysian economy takes a hit from the knock-on effects of a flagging global economy, MIER said.
The US has managed to post a good performance in the second quarter of 2008 and delayed a severe slowdown thanks to tax rebates, a previously weak dollar and the cut in interest rates.
With the outlook for the global economy turning increasingly dismal, Malaysia’s GDP growth could decelerate to 3.4% in 2009, MIER said. — Bernama