10 Aug '11, 12pm

M'sian economy \\"won't grow over 5% this year\\"

KUALA LUMPUR: The global economic slowdown coupled with massive sell-offs across regional bourses have forced many countries to revise their growth forecasts. Analysts have predicted the Malaysian economy would not grow more than five per cent this year. The impending slowdown is weighing heavily on Prime Minister Najib Razak's plan to go for snap polls later this year. With trade making up 220 per cent of the country's gross domestic product (GDP), Malaysia's export-reliant economy is taking a hit from sluggish demand in the US and Europe. Several economists have downgraded the country's growth forecast this year to five per cent amid rising fears of a double-dip recession in the US. RAM Holdings group chief economist Yeah Kim Leng said: "Malaysia is still vulnerable to slowdown in G3 economies. We do see fragile and very weak growth especially in the second half of this ...

Full article: http://www.channelnewsasia.com/stories/marketnews/view/11...

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