Economic Views
Should Malaysia tolerate slower growth?
MALAYSIA’S economic growth has lost steam over the last decade with the average annual GDP growth pace coming in at 5.33%. This was a significant drop from the average annual growth pace of 9.27% in the decade before the 1997 Asian financial crisis. Concurrently, the country’s revenue-to-GDP is on a decline since the early-1990s, from …
Weighing policy mix options during the downcycle
Recent global macro data suggests that economic uncertainties have continued to rise. Numerous signs are there – June’s global manufacturing Purchasing Managers’ Index (PMI) fell to its lowest level since the second half of 2012. The PMI report further revealed that business optimism plunged to a record low, while new orders contracted at the fastest …
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US-China Trade Deal Like a Box of Chocolates
In 1994’s Forrest Gump – arguably one of Hollywood’s most memorable films – Tom Hanks taught us how his momma wittily described life: it’s like “a box of chocolates.” He meant that life is so unpredictable that “you’ll never know what you’re gonna get.” Many moviegoers loved that phrase. Twenty-five years later, economists are learning …
More red flags on global trade
Let’s start with some good news. Malaysia’s headline gross domestic product (GDP) growth remained in mid-4% territory in the first quarter of 2019, exceeding expectations and can be considered respectable against the recent series of unfavourable global developments. Statistics show that domestically, consumers’ buying strength continued to support headline growth. Malaysians are still spending, helped …