NST
KUALA LUMPUR, Wed: Malaysia's first quarter gross domestic product this year contracted by 6.2 percent from a growth of 0.1 percent in the fourth quarter last year but the prognosis for improved economic conditions look brighter in the second half of the year.
Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, in announcing the GDP figures, attributed the contraction to the significant deterioration in external demand following the deepening recession in advanced economies.
"Export demand continues to be weak and the environment is still challenging. Despite early signs of improvement, Q2 will be similar to Q1," she told a press conference on the country's economic performance here today.
The economy was expected to continue to contract in the second quarter, she said.
"However, economic conditions are expected to improve in the second half of this year supported by fiscal stimulus measures and enhancing access to financing," said Dr Zeti.
"Malaysia is expected to see a significant improvement in the third quarter this year and a higher degree of positive growth in the fourth quarter that would continue into next year."
"There will be improvement, but it will also depend on both the external and domestic environment as well," she said.
"If the measures taken by other economies does take place, then Q2 would have seen the worst, she added.
Elaborating on the first quarter contraction, Dr Zeti said it was contributed also by the large inventory drawdown, particularly in the manufacturing and commodity sectors.
Fixed investment registered a decline due to weaker business sentiment. Public spending however, provided some support to growth.
On the supply side, all sectors recorded contraction except for the construction sector.
KUALA LUMPUR, Wed: Malaysia's first quarter gross domestic product this year contracted by 6.2 percent from a growth of 0.1 percent in the fourth quarter last year but the prognosis for improved economic conditions look brighter in the second half of the year.
Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, in announcing the GDP figures, attributed the contraction to the significant deterioration in external demand following the deepening recession in advanced economies.
"Export demand continues to be weak and the environment is still challenging. Despite early signs of improvement, Q2 will be similar to Q1," she told a press conference on the country's economic performance here today.
The economy was expected to continue to contract in the second quarter, she said.
"However, economic conditions are expected to improve in the second half of this year supported by fiscal stimulus measures and enhancing access to financing," said Dr Zeti.
"Malaysia is expected to see a significant improvement in the third quarter this year and a higher degree of positive growth in the fourth quarter that would continue into next year."
"There will be improvement, but it will also depend on both the external and domestic environment as well," she said.
"If the measures taken by other economies does take place, then Q2 would have seen the worst, she added.
Elaborating on the first quarter contraction, Dr Zeti said it was contributed also by the large inventory drawdown, particularly in the manufacturing and commodity sectors.
Fixed investment registered a decline due to weaker business sentiment. Public spending however, provided some support to growth.
On the supply side, all sectors recorded contraction except for the construction sector.
Malaysian Ringgit Exchange Rate