Monday, November 22, 2010

GDP growth slower at 5.3% in 3Q

KUALA LUMPUR: The country's economy grew at a slower pace in the third quarter at 5.3% on-year, mainly due to weaker external demand.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said on Monday, Nov 22 that the gross domestic product (GDP) was 'still on track to meet the 6% to 7% GDP growth target for 2010'.

'The growth pace may continue to moderate in first quarter of 2011 but we expect stronger pickup in the second half of next year," she said at a press conference at Bank Negara. In 2Q, GDP grew at 8.9%.

The manufacturing sector expanded 7.5% in 3Q on-year, services 5.4% and agriculture 2.7% but mining declined 1%.

Zeti added the central bank would continue to adopt an accommodative financing environment. "We believe the current level of OPR (overnight policy rate) is supportive of economic activities," she said.


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