Mier raises growth forecast for 2011 to 4.9pc
KUALA LUMPUR: The Malaysian Institute of Economic Research (Mier) has raised its growth forecast of Malaysia for 2011 to 4.9 per cent from 4.6 per cent previously.
Executive director Dr Zakariah Abdul Rashid, however, expects 2012 to hold dimmer growth prospects compared to 2011.
These are underpinned by downside risks from developments in the euro zone, weak US recovery, hard-landing of the Chinese economy and growing Middle East tensions.
Speaking at a media briefing on the fourth quarter 2011 performance, yesterday, Zakariah said Mier's results of various indices showed that the Malaysian economy was already in a contractionary mode.
"We can only conclude that fourth quarter 2011 real GDP (gross domestic product) growth moderated both year-on-year and quarter-on-quarter and that economic growth will likely get bumpier in the months ahead.
"The results of Mier's fourth-quarter Business Conditions Survey indicate declining manufacturing sector sentiments.
The business conditions index ended below the 100-point threshold level while consumer sentiments have also fallen during the fourth quarter, which indicates a marginal worsening of sentiments.
Its CEO Confidence Index, which compiles opinions and projections from chief executives of mostly small- and medium-sized companies, also ended the fourth quarter below the 100-point threshold level.
They were pessimistic about the near-term economic outlook.
Zakariah said big-ticket items are being postponed as the business community preferred to wait and see the general election results before proceeding.
Mier expects the economy to decelerate markedly to 3.7 per cent in 2012.
Source : New Straits Times
Date : 20 January 2012
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