Friday, February 18, 2011

#Flash* Malaysian GDP grew 4.8pct in 4Q; expanded 7.2pct in 2010

KUALA LUMPUR: Malaysian economy grew 4.8% in the fourth quarter of 2010, underpinned by higher private and public sector spending.

'The slower growth in the global economy, however, had led to weaker growth in external demand,' Bank Negara said on Friday, Feb 18.

'On the supply side, all economic sectors, with the exception of the primary sectors, continued to expand further during the quarter. For the year as a whole, the Malaysian economy registered a growth of 7.2% (2009:-1.7%),' it said.

On the outlook, the central bank said the global economic recovery is expected to remain uneven across the different regions.

Bank Negara said while short-term prospects for the advanced economies have improved recently, uncertainties remain over weak fiscal positions, high unemployment and constrained lending conditions.

However, the growth outlook for Asia remains favourable, supported by robust domestic demand.'' But the regional economies are confronted with the challenges of rising inflationary pressures, particularly from high commodity and fuel prices, and the large and volatile capital flows.

'The pace of growth of the Malaysian economy will be affected by the environment of moderating external demand.'' Growth will, nevertheless, be supported by continued firm expansion in domestic demand.

'Private consumption spending will continue to benefit from the favourable labour market conditions, firm commodity prices and access to financing. The roll-out of CONSTRUCTION [] and infrastructure activities and the implementation of the economic transformation programme by the Government are likely to provide significant support to the growth momentum in private investment,' it said.

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