Malaysia GDP growth to slow, say economists
Malaysia’s economy should continue to show growth for the second half of 2010 but at a reduced and more sustainable rate, say economists. Overall, growth in 2010 should be at 7.24%, but due to this initial surge and continued uncertainty in other parts of the world it should slow to 5.71% in Q3 2010. Estimates from a number of institutions for 2011 range from 4.5% to 5.8% (average 5.27%).
Most major sectors of the economy are expected to show reduced growth, possibly due to the stronger ringgit and other structural competitiveness issues. Services including energy, transport and retail, representing 57% of GDP, will probably slow to 5.5% growth and manufacturing items like electronics and transport equipment should slow to 7.5% due to reduced demand for Malaysia’s exports.
Construction and mining will also show lowered growth, however agriculture has actually increased to 9.1%, and the finance and tourism sectors have also seen increased activity.
source & article: Business Times
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