KUALA LUMPUR: Malaysia's economic growth in the first quarter of 2011 is expected to be no less than 4.5 per cent, Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said Thursday, April 28.
"Based on the data compiled in the first two months, the growth is seen not to be less than 4.5 per cent," he told reporters at the launch of the World Bank's Malaysia Economic Monitor-Brain Drain report here.
He said the first quarter results would be released in May.
He said the country's growth was expected to pick up in the second half of 2011 with Gross Domestic Product seen expanding between five and six per cent for the whole year.
Meanwhile, the World Bank's senior economist for Malaysia, Philip Schellekens, said the country was expected to develop favourably at 5.3 per cent in 2011 and 5.5 per cent in 2012 after staging a strong recovery last year.
As in the past years, domestic demand, especially private consumption and fixed investment, was expected to continue driving the economy, he added.
According to the report, private investment is set to strengthen but remains highly sensitive to progress with the implementation of Economic Transformation Programme (ETP) projects.
Consumer price inflation, meanwhile, is expected to gain strength before moderating. Inflation is expected at three per cent in 2011 and 2.5 per cent in 2012 as a result of higher global food and energy prices.
The report also shows that further monetary policy normalisation is likely in 2011 after Bank Negara Malaysia signalled in its March statement that demand-pull inflation is building up.
Further Overnight Policy Rate (OPR) rises are expected in the coming months but how soon the rate will return to the pre-crisis level remains data-dependent, according to the report.
Additional Statutory Reserve Requirement adjustment is also expected, especially if OPR normalisation leads to excessive capital inflows and liquidity in the financial markets. - Bernama
"Based on the data compiled in the first two months, the growth is seen not to be less than 4.5 per cent," he told reporters at the launch of the World Bank's Malaysia Economic Monitor-Brain Drain report here.
He said the first quarter results would be released in May.
He said the country's growth was expected to pick up in the second half of 2011 with Gross Domestic Product seen expanding between five and six per cent for the whole year.
Meanwhile, the World Bank's senior economist for Malaysia, Philip Schellekens, said the country was expected to develop favourably at 5.3 per cent in 2011 and 5.5 per cent in 2012 after staging a strong recovery last year.
As in the past years, domestic demand, especially private consumption and fixed investment, was expected to continue driving the economy, he added.
According to the report, private investment is set to strengthen but remains highly sensitive to progress with the implementation of Economic Transformation Programme (ETP) projects.
Consumer price inflation, meanwhile, is expected to gain strength before moderating. Inflation is expected at three per cent in 2011 and 2.5 per cent in 2012 as a result of higher global food and energy prices.
The report also shows that further monetary policy normalisation is likely in 2011 after Bank Negara Malaysia signalled in its March statement that demand-pull inflation is building up.
Further Overnight Policy Rate (OPR) rises are expected in the coming months but how soon the rate will return to the pre-crisis level remains data-dependent, according to the report.
Additional Statutory Reserve Requirement adjustment is also expected, especially if OPR normalisation leads to excessive capital inflows and liquidity in the financial markets. - Bernama
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