Economic Outlook - Risk Is A Sharper-than-expected Slowdown In In The 2H, Not A Double Dip - 18/6/2010

The country’s economic growth is likely to have peaked in the 1Q and will likely expand at a slower pace in the 2H of the year, on account of slower global economic growth due to dissipating fiscal spending and Europe’s austerity measures. These will likely be compounded by policies tightening in some Asian countries. Locally, fiscal stimulus by the Malaysian Government will also be running out of steam in the 2H of the year. As a result, we expect real GDP growth to soften to 4.8% yoy in 2H 2010, from an estimate of +8.8% in the 1H. For the full-year, real GDP is envisaged to recover to +6.8% in 2010, from -1.7% in 2009.

Economic Outlook - Risk Is A Sharper-than-expected Slowdown In In The 2H, Not A Double Dip - 18/6/2010