Macroeconomic Forecast Malaysia

April 2006 | Macroeconomic Forecasts

We forecast real growth of 5.6% in 2006. The external environment currently remains supportive of strong export growth, although the indebtedness of US consumers remains a threat. Our forecasts are also dependant upon the global electronics cycle avoiding a slide into a downturn towards the end of the year. The domestic environment looks healthy with consumer demand still acting as a driver of growth. Malaysian consumers are, however, sensitive to inflation. The monetary tightening cycle is a further risk to domestic demand.

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