MALAYSIA'S GDP TO CONTRACT 2.3 PCT IN 2009, GROW 4.1 PCT IN 2010

BANGKOK, Nov 4 (Bernama) -- Malaysia's near-term outlook shows a slow process of recovery, with real GDP projected to contract 2.3 per cent this year before growing by 4.1 per cent next year, the World Bank said in its latest update Wednesday.

In its half-yearly assessment of the economic health of East Asia and Pacific region released today, it said the revised projection showed lower growth compared to -1.0 forecast in April.

It said consumption and fixed investment growth would remain relatively subdued due to uncertainties on the global outlook, efforts of fiscal consolidation and still low levels of capacity utilisation.

The turnaround in the inventory cycle is expected to be the main growth driver, it said, adding that import growth would continue to outpace export growth in the coming quarters, resulting in a smaller trade surplus.

The current account balance is expected to decline to 12.3 per cent of the GDP this year and further to 12.1 per cent next year.

-- MORE

AR TOM