The World Bank knows it all and is seldom wrong. Haha. Okay, let’s listen to what they have to say about the Malaysian gross domestic product (GDP). If you want, you can also read the full report here in NST. In brief, World Bank said for 2016, Malaysia’s GDP will fall to only a growth of 4 percent. However, by 2017 and 2018, with the manufacturing growth and commodities, we would do better. Its chief economist for World Bank’s east Asia and Pacific, Sudhir Shetty said, “The World Bank predicts that Malaysia’s economic growth in 2017 and 2018 will be better compared to the 4.0 per cent targeted this year.”
What about other countries? China is expected to grow 6.7 percent in 2016 followed by 6.5 and 6.3 in the next two years. Everyone else in the region is expected to remain stable at 4.8 percent but will pick up in 2017 and 2018. Sudhir issued a warning however. “Despite the favourable prospects the region’s growth is subject to significant risks. These uncertainties make it critical for policymakers to reduce financial and fiscal imbalances that have built up in recent years.”
I think what Sudhir is saying is that we need to contain the current household debt to GDP ratio. Fortunately our trade numbers are still in the black unlike some developed countries. Household debt to GDP is indeed high but I personally believe any crisis due to crazy household debt vs GDP numbers is not likely to start from Malaysia. Do google for some additional answers. My wish is for oil prices to stay at current level (US$50, as at 6th Sept 2016) for as long as possible. It’s good enough. Moving up higher under current economic situation is definitely not a good combination for most countries except the net-oil producing countries. Keep growing Malaysia.
written on 6 Sept 2016
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