KUALA LUMPUR: The Asian Development Bank (ADB) says Malaysia's economy is expected to moderate to a shade over 4% in the second half of this year and expand at 5% in 2011.
It said on Tuesday, Sept 28 the slower 2H growth would mainly due to a base effect compared with 2H2009 when the economy picked up.
'The government's index of leading indicators has contracted month on month since March 2010, while the six-month smoothed growth rate of the index decelerated from 11.2% in March to 2.0% in June 2010, indicating a slowing pace of economic growth for the rest of this year,' it said.
The ADB said for 2011, GDP growth is forecast at about 5.0%, moderating from this year owing to less favourable base effects, unwinding of policy stimulus, and more subdued growth in several major export markets.
On inflation, ADB expected it to be at 2.4% in 2011.
On the trade front, export growth is projected to moderate over the rest of 2010 and into next year, due to a less supportive external environment, the completion of inventory buildups in industrial economies, and lower prices for some commodities.
It said on Tuesday, Sept 28 the slower 2H growth would mainly due to a base effect compared with 2H2009 when the economy picked up.
'The government's index of leading indicators has contracted month on month since March 2010, while the six-month smoothed growth rate of the index decelerated from 11.2% in March to 2.0% in June 2010, indicating a slowing pace of economic growth for the rest of this year,' it said.
The ADB said for 2011, GDP growth is forecast at about 5.0%, moderating from this year owing to less favourable base effects, unwinding of policy stimulus, and more subdued growth in several major export markets.
On inflation, ADB expected it to be at 2.4% in 2011.
On the trade front, export growth is projected to moderate over the rest of 2010 and into next year, due to a less supportive external environment, the completion of inventory buildups in industrial economies, and lower prices for some commodities.
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