KUALA LUMPUR: The International Monetary Fund (IMF) expects Malaysia’s growth to remain stable in 2020 before rebounding in the medium term, with inflation slightly higher and the current account declining. The fund said domestic demand would be the main driver of the country’s growth, with stable employment and income growth supporting private consumption. Meanwhile, the IMF said risks to the growth outlook were, on balance, to the downside, citing that Malaysia’s highly open economy was vulnerable to escalating trade actions and weaker-than-expected trading partners’ growth. Domestically, the IMF said contingent liabilities could pose fiscal risks. The IMF said Malaysia’s financial sector was stable, and that profitability, capitalisation and asset quality of banks were sound.

Source: New Strait Times March 02, 2020 03:45 UTC