Executive Summary
The economy softened to 8.9% yoy in the 2Q, after hitting a peak of +10.1% in the 1Q. We expect the growth to decelerate further in the 2H of the year and this will likely continue into 2011, on the back of a slowdown in exports. The surge in the ringgit in a short span of time, coupled with the removal of subsidies and rising borrowing costs which happened at around the same time, is likely to slow down exports and business spending further.
Economic Outlook : Slowing Growth, But Recovery On Track- 08/09/2010
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