Malaysia Says Exports to Bottom Later Than Expected
Malaysia’s exports will recover later than expected and won’t be past the worst for another “couple” of months, Trade Minister Mustapa Mohamed said today.
“It’ll probably be a couple more months before exports bottom out,” Mustapa said in an interview in Singapore, where he’s attending a meeting of trade ministers from the Asia- Pacific Economic Cooperation. “We thought it would happen earlier but unfortunately it will be later than expected.”
Exports by the Southeast Asian nation fell for an eighth month in May, declining 29.7 percent from a year earlier as shipments of electronics and commodities plunged amid the global recession. Malaysia’s economy contracted for the first time since 2001 in the first quarter as overseas sales slumped, pushing the country toward its first recession in a decade 500 fast cash.
The central bank has kept its benchmark interest rate unchanged at 2 percent for the two past meetings after lowering it by 1.5 percentage points since late November, in anticipation economic growth will improve later this year.
Trade is “still in a fairly sizeable negative territory,” Mustapa said. “Exports are not likely to be positive for the full year. Next year, the outlook appears to be looking better. By the end of this year, it looks like exports will be back on track.”
Filed under: technology by Wolf