MIER sees 2010 GDP growth at 6.5pc
By Reuters
KUALA LUMPUR, Oct 19 — A top think-tank said today it expected the economy to expand by 6.5 per cent this year, below the government’s forecast of 7 per cent, as it sees slower exports and weaker business sentiment.
The Malaysian Institute of Economic Research (MIER) said the weaker tone was expected to prevail until 2011, where it forecasts economic growth of 5.2 per cent.
“There are downside risks to growth and we have based this on slowing exports and weaker sentiment in our business conditions survey,” the think-tank said.
It expects inflation at 2 per cent in 2010 and 2.5 per cent in 2011. The authorities would likely raise interest rates to 3.25 per cent by end 2011 from 2.75 per cent to control inflation.
