Malaysia export to GDP>100%, Eco grow down to 3.5%
Pretty scary stuff with export (gross) > 100% of GDP. It is so export dependent, and sounds like
Malaysian sole reason of exsitence is to make stuffs for other countries..
KUALA LUMPUR, Nov 4 (Reuters) - The downward revision of Malaysia’s 2009 economic growth forecast is not a surprise given the country’s heavy dependence on exports, ratings agency Moody’s said on Tuesday.
Malaysia’s government dramatically increased its budget deficit forecast for 2009 due to slowing revenues and said that economic growth would come in at just 3.5 percent, its slowest pace since 2001.
‘The growth forecast has not come as a surprise, obviously Malaysia is quite heavily exposed to the global economy with an exports-to-GDP ratio in excess of 100 percent,’ said Aninda Mitra, Sovereign Analyst at Moody’s (nyse: MCO - news - people ) Investors Service.
The country’s direct export exposure to the U.S., the European Union and Japan is also very high at almost one-third of the total exports, he said.
‘So in that context the export slowdown is under way. Not only that, but also commodity prices have dropped a lot, palm oil and crude oil prices have come down quite a bit, so the growth revision does not come as a surprise.’
He did not comment on the revised budget deficit, saying he needed to see the details.