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Malaysia - The Star - Malaysia Institute of Economic Research Revises 2007 GDP to 6.1% Print E-mail

MIER revises 2007 GDP to 6.1%

KUALA LUMPUR: The Malaysian Institute of Economic Research (MIER) has revised upward its forecast for Malaysia's economic growth in 2007 to 6.1% from 5.7%. 

Announcing its fourth quarter estimate for the country's economy yesterday, the private think tank said the upward revision was made without any compelling upside factors, while accounting for the recent revisions in gross domestic product (GDP) data.  

MIER's upward revision is in line with Bank Negara's estimate that the growth last year would be in the 6% range. 

For 2008, MIER said it maintained Malaysia's GDP growth projection at its previously revised forecast of 5.4%. 

It added that should the US go into mild recession this year, Malaysia's economic growth in 2008 was expected to be in the 4% to 5% range. 

“It now appears that the odds of an imminent recession in the US are more than 50%. 

“However, with the expected rebound in the global economy in 2009, the Malaysian economy could shift towards its potential growth trajectory, expanding by 5.7%,” it said. 

On inflation, MIER said it was projected at 3.2% this year on expectation of adjustment in petrol subsidy. 

On the ringgit, currently at 3.26 against the US dollar, MIER expects it to strengthen further to 3.0 by year-end.  

“Offshore trading is likely to be permitted for the ringgit by end of this year. 

“After free float, the ringgit is expected to perform stronger, even below 3.0 to the US dollar.” – Bernama 

(Source: The Star Online, 2008)


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