International Monetary Fund (IMF) expects a poorer global economic outlook for the 2nd half of 2008 compared to the first half of the year as recent weaker economy indicators for the US, Euro area, Japan and emerging and developing countries suggest a further deceleration of activity in the 2nd half. Besides, the financial sector also remain elevated as rising losses are putting strain on balance sheets and compounding the crisis in the credit markets. The financial problems are spreading from U.S to other countries such as Europe and Japan.
IMF forecasts 4.1% global growth for this year, U.S 1.3%, Euro area 1.7%, Japan 1.5%, China 9.7%, ASEAN 5.6% and overall emerging and developing economies by 7%.
Inflation pressure remain intense for the rest of the year, due to high energy, commodity and food prices. For advanced economies, CPI for the full year 2008 is projected to increase by 3.4% (earlier estimated 2.6%). For emerging and developing economies, CPI is expected to increase by 9.1% (earlier estimated 7.4%)
Govt are now having a tough task of trying to curb inflation without jeopardising economic growth. Stronger monetary policies, greater fiscal restraint and more flexible exchange rate system in some cases are needed to cool down the economy, especially for economies which are experiencing above-trend growth, such as China.
FBM KLCI - likely to stay in consolidation with an upward bias amid focus
on US tariff deal deadline
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Stocks on Bursa Malaysia ended higher Friday with the benchmark FBMKLCI
closed slightly higher, supported by continued buying in selected
heavyweights,...
2 hours ago
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