Mahathir sees Malaysian economy growing in 2001
Mahathir sees Malaysian economy growing in 2001
Reuters, Kuala Lumpur
Malaysia will record positive gross domestic product (GDP)
growth for the full year in 2001, Prime Minister Mahathir Mohamad
said on Thursday, despite forecasts of a contraction by some
analysts.
GDP shrank 1.3 percent year-on-year in the third quarter, the
first contraction in over two years, because of a slump in
electronics exports.
Asked whether the country will post positive growth for the
full year, Mahathir said: "I think we can."
Malaysia recently cut its official GDP growth forecast for
2001 to 1.0-2.0 percent from 5.0-6.0 percent.
"We need to grow just a little bit in the fourth quarter in
order to achieve positive growth for the year," Mahathir told
reporters in parliament.
The economy grew 0.5 percent in the second quarter and 3.1
percent in the first quarter.
HSBC Fixed Income Research said late last month it expected
the country's economy to contract in the fourth quarter, but
rebound in 2002.
It did not give a forecast for fourth-quarter GDP but
projected a contraction of 0.2 percent for the full year versus
2000's blistering 8.5 percent.
Mahathir said consumption is expected to rise in the fourth
quarter while exports improved in October. He added that growth
has to be driven by domestic activities given that the global
economy was expected to experience a slowdown.
"What the country needs to register growth for the whole year
are higher consumption and exports," he said.
Signs of a recovery in tourist arrivals, which had slumped
following the September 11 attacks on the United States, will
also help underpin fourth quarter GDP growth.
"In many areas, there are positive signs. So I'm hopeful that
there will be growth," he said.
But the prime minister said growth in the fourth quarter was
unlikely to match that of the final quarter of last year when GDP
grew 6.3 percent year-on-year.
"We must remember in the fourth quarter last year, we achieved
a very high growth rate. It's very difficult to achieve the same
growth rate," he said.