So the government must be doing something right to convince the World Bank that growth in within sight in 2010.
In its latest report, "Global Development Finance 2009: Charting a Global Recovery", which charts the global economic situation, the World Bank has projected that Malaysia's real gross domestic product (GDP) will possibly fell by 4.4 per cent this year before recovering to 2.2 per cent in 2010 and 5.3 per cent in 2011.
The bank said thanks to China, the growth in developing East Asia and the Pacific would be the fastest among the world’s regions and was projected at five per cent. China is expected to grow faster than most other countries this year at an estimated 9.3 per cent but was likely to drop to 8.3 per cent next year.
It said excluding China, the GDP in the region was expected to decline by 0.2 per cent in 2009, the slowest since the crisis of the late 1990s.
According to the report, amid global economic recession and financial market fragility, net private capital inflows to developing countries fell to US$707 billion (RM2.47 trillion) in 2008, a sharp drop from a peak of US$1.2 trillion in 2007.
International capital flows are projected to fall further in 2009, to US$363 billion, it said.
The report warned that the world was entering an era of slower growth that would require tighter and more effective oversight of the financial system, saying that global growth was also expected to be negative, with an expected 2.9 per cent contraction in 2009, before rebounding to two per cent in 2010 and 3.2 per cent by 2011.
"The need to restructure the banking system, combined with emerging limits to expansionary policies in high-income countries, will prevent a global rebound from gaining traction," said the World Bank.
The World Bank hopes that developing countries could become a key driving force in the recovery, assuming their domestic investments rebound with international support, including a resumption in the flow of international credit.
I hope the World Bank is right!
No comments:
Post a Comment