The global economy outlook seemed to look bleak and that has affected Malaysia in more ways than one could imagine. The recent events in the United States as well as across Europe where the governments are all trying to cut spending and to get a better grip of their economies meant that some are looking at ways to ‘ride through’ the current mini crisis.
With the uncertainties in the global outlook and the slowdown in businesses around the world coupled with the recent unrests like the London riots, the outlook for Malaysia in the second half of 2011 looked bleak as well.
Next week will be the announcement of the GDP (Gross Domestic Product) data for the second quarter and that will provide a true account of what has been happening in the local economy as well as to allow investors a better gauge of what to expect in the next 2 quarters. At the end of last year, the forecast for the GDP of Q2 2011 was at 4.4% and analyst believe that it will be around the 3.8 or 3.7% bracket. For the whole year, it was forecasted at 5% and the current situation will see it being revised downward to around 4.8% to 5%.