Wednesday, February 26, 2003
Malaysian economy grew 4.2% in 2002, says central bank Associated Press Kuala Lumpur, February 26
Malaysia's economy expanded by 4.2 per cent last year, rebounding strongly from its tiny 0.4 per cent growth the year before, the central bank said on Wednesday.
The central bank attributed the favourable growth to improved domestic demand as well as rising exports.
In the fourth quarter, Malaysia's gross domestic product -- a measure of a nation's output of goods and services -- expanded by 5.6 per cent from a year earlier, slightly higher than analysts' expectations of 5.3 per cent growth.
The better-than-expected growth figures indicate that the country's economy is recovering after being hit hard by the global economic slowdown and decline in tourism that followed the September 11, 2001, attacks in the United States.
Growth in the fourth quarter -- which followed a 5.8 per cent year-on-year expansion in the third quarter -- also benefited from higher crude oil and gas prices and increased world palm oil prices. Malaysia is the world's largest exporter of palm oil and a net exporter of crude oil.
The government hopes the economy will grow by six per cent to 6.5 per cent in 2003, but private economists are less upbeat, forecasting a five per cent increase on average.
Economists remain cautious over lingering domestic and external uncertainties, including the effects of a potential war in Iraq and the possibility of a faltering US recovery. The United States is Malaysia's biggest trading partner.
Prime Minister Mahathir Mohamad is expected to announce new measures in March to stimulate the economy.
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