MIER cuts 2009 GDP growth forecast to minus 2.2%
By Wong Choon Mei The Malaysian Institute of Economic Research expects the country’s export-reliant economy to shrink 2.2 percent this year, worst than official forecasts, but better than other private researchers have warned could happen if the government continued to dilly-dally in implementing fiscal stimulus. “In light of the deep declines in macro indicators, the gloomy business and consumer confidence, and the dismal sectoral indices, we are obliged to revise Malaysia’s growth forecast for 2009 downwards. If exports shrink severely, the downturn could be more harmful,” MIER said in a report. The think-tank had previously forecast GDP growth of 1.3 percent for 2009 and 3.8 percent for 2010. It now expects an upswing in 2010, with GDP growth at 3.3 percent on the back of a global recovery. It also saw 2009 inflation at 2 percent and unemployment at 4.8 percent. The central Bank Negara may cut interest rates to 1.5 percent or lower, down from 2 percent at present, to stimulate borro...