Malaysian economy to contract by 4.4 pct, says WB

The World Bank has forecast that Malaysia's real gross domestic product (GDP) is expected to fall by 4.4 percent this year before recovering to 2.2 percent next year and 5.3 per cent in 2011.

In its latest report on the global economic situation, entitled “Global Development Finance 2009: Charting a Global Recovery”, released on June 22, it said the contraction was a result of Malaysia’s high dependence on exports of electronics, oil and crude palm oil, all of which were falling sharply, coupled with its relatively small domestic market, Bernama news agency said.

The bank said that in both Malaysia and Thailand, among the region's other middle-income countries, output was projected to contract in 2009 because of a fall in exports and investment.

Meanwhile, Indonesia and Vietnam are projected to register 3.5 percent growth in 2009 and 5.0 percent growth next year, and the Philippines economy would see a 0.5 percent fall this year, before climbing by 2.4 percent the following year, according to the news agency./.