Malaysia's GDP to contract by 1.3% if tariff slapping escalates

August 14, 2018 | By | Reply More

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KUALA LUMPUR: Malaysia’s gross domestic product (GDP) could contract by 1.3% in two years, should the trade war between the US and China intensify.

CIMB Group chief economist Dr Donald Hanna said the contraction on Malaysia’s economic growth is possible in the event of continuous escalation of tariff imposition and a confidence shock in the financial market.

However, at current levels he noted that the impact of the duel between the two economic giants on Malaysia is small.

He projected the GDP growth to decelerate to around 5.1% for Q2 of 2018 from the 5.8% recorded in Q2 2017 –taking cue from the slower growth in the Industrial Production Index (IPI).

Full year GDP growth is expected to be around 5.1-5.2%.

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