Financial news: World economic growth slows. What about recession?
What is the definition of recession?
As per investopedia.com: A recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used. Do read the full writeup in investopedia.com here if you like to know better
This was what our Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus said in an article here. Malaysia will not go into recession as continued growth looms in 2023. She said the Malaysian economy would continue to be supported by the continued recovery in the labour market, expected V-shape recovery for the tourism sector and strong investment from both public and the private sector. She said, “We are not seeing a global recession (this year). In fact, the International Monetary Fund (IMF) had revised its earlier outlook not just for last year but even this year.”
Article in freemalaysiatoday.com The IMF predicted the global economy will grow by 2.8% this year and 3% in 2024, a decline of 0.1 percentage point from its previous forecasts in January.
Its chief economist Pierre-Olivier Gourinchas said, “The global economy is recovering from the shocks of the last few years, and particularly of course the pandemic, but also the Russian invasion of Ukraine.”
Close to 90% of advanced economies will experience slowing growth this year, while Asia’s emerging markets are expected to see a substantial rise in economic output — with India and China predicted to account for half of all growth, IMF managing director Kristalina Georgieva said last week. Do refer to the full article here: Article in freemalaysiatoday.com
Focus on India and China yeah (plus ASEAN too)
Half of all growth would come from China and India as per the article yeah. I think the next country our PM will be going next should be India. 🙂 This was the good news recently after the China trip. Johor to receive RM80 billion worth of FDI from China. Meanwhile ASEAN better become more closely integrated economically. Growing each other’s economy is the way to go. I believe what out BNM governor said. Malaysia will be growing enough and will avoid recession in 2023.
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