Page 159 - Malaysia Baharu 2018
P. 159
k Negara Malaysia Executive Summary 2018
The global economy started the year economies, pockets of vulnerabilities
2018 on a positive note following also emerged in some of these
expectations for a stronger growth economies, which culminated in the
momentum from the previous year. currency sell-offs in Argentina and
In the earlier part of the year, both Turkey. A number of central banks
global trade and growth continued in emerging market economies
the upward trajectory which began also tightened monetary policy
since end-2016. As the year due to concerns on higher inflation
progressed, however, the global arising from the depreciation of their
economy was confronted with multiple currencies and the earlier increases
headwinds such as the escalation in commodity prices. As a result 6 | MALAYSIAN ECONOMY
of trade conflicts, renewed volatility of these developments, financial
in commodity prices, and bouts of market performances in advanced
volatility in global financial markets. economies, particularly the US, and
As a result, most major advanced emerging market economies diverged
and regional economies experienced during the year.
a more moderate expansion during
the year. In the advanced economies, Despite the challenging global
improving labour market conditions economic and financial environment,
lifted consumption activity. In the Malaysian economy demonstrated
Asian economies, GDP growth was resilience and recorded a respectable
predicated on continued resilience growth of 4.7% in 2018. The Annual
in domestic demand amid waning Report provides an analysis of
support from external demand. Global the development in the Malaysian
headline inflation in 2018 was higher, economy and outlines the future
driven mainly by supply-related challenges. The report also highlights
factors. Core inflation rates remained the Bank’s continuous efforts to
modest across both advanced and strengthen its governance and
emerging market economies, reflecting organisational development.
moderating demand pressures.
The Malaysian Economy in
Overall global financial conditions 2018
tightened in 2018, reflecting the
normalisation of global monetary The Malaysian economy expanded at
policy and heightened financial market a more moderate pace of 4.7% in 2018
volatility due to ongoing policy and (2017: 5.9%). Despite a positive start to
economic uncertainties. Monetary 2018, the economy subsequently was
policies in most advanced economies, confronted with several external and
particularly the US, remained on domestic challenges. Major policy and
their normalisation paths. Emerging political shifts, arising partly from the
market economies also experienced global trade tensions and the historic
tighter financial conditions as the change of government in Malaysia,
monetary policy normalisation in became sources of uncertainty
advanced economies led to large for the economy. Unanticipated
portfolio outflows from emerging supply disruptions in the mining
market financial assets. At the same and agriculture sectors, as well as
time, ongoing risk-off developments commodity exports adversely affected
such as the global trade tensions Malaysia’s economic performance,
further contributed to sudden shifts resulting in a larger-than-expected
in investor sentiments and episodes moderation in growth.
of financial market volatility. As funds
shifted away from emerging market
157
The global economy started the year economies, pockets of vulnerabilities
2018 on a positive note following also emerged in some of these
expectations for a stronger growth economies, which culminated in the
momentum from the previous year. currency sell-offs in Argentina and
In the earlier part of the year, both Turkey. A number of central banks
global trade and growth continued in emerging market economies
the upward trajectory which began also tightened monetary policy
since end-2016. As the year due to concerns on higher inflation
progressed, however, the global arising from the depreciation of their
economy was confronted with multiple currencies and the earlier increases
headwinds such as the escalation in commodity prices. As a result 6 | MALAYSIAN ECONOMY
of trade conflicts, renewed volatility of these developments, financial
in commodity prices, and bouts of market performances in advanced
volatility in global financial markets. economies, particularly the US, and
As a result, most major advanced emerging market economies diverged
and regional economies experienced during the year.
a more moderate expansion during
the year. In the advanced economies, Despite the challenging global
improving labour market conditions economic and financial environment,
lifted consumption activity. In the Malaysian economy demonstrated
Asian economies, GDP growth was resilience and recorded a respectable
predicated on continued resilience growth of 4.7% in 2018. The Annual
in domestic demand amid waning Report provides an analysis of
support from external demand. Global the development in the Malaysian
headline inflation in 2018 was higher, economy and outlines the future
driven mainly by supply-related challenges. The report also highlights
factors. Core inflation rates remained the Bank’s continuous efforts to
modest across both advanced and strengthen its governance and
emerging market economies, reflecting organisational development.
moderating demand pressures.
The Malaysian Economy in
Overall global financial conditions 2018
tightened in 2018, reflecting the
normalisation of global monetary The Malaysian economy expanded at
policy and heightened financial market a more moderate pace of 4.7% in 2018
volatility due to ongoing policy and (2017: 5.9%). Despite a positive start to
economic uncertainties. Monetary 2018, the economy subsequently was
policies in most advanced economies, confronted with several external and
particularly the US, remained on domestic challenges. Major policy and
their normalisation paths. Emerging political shifts, arising partly from the
market economies also experienced global trade tensions and the historic
tighter financial conditions as the change of government in Malaysia,
monetary policy normalisation in became sources of uncertainty
advanced economies led to large for the economy. Unanticipated
portfolio outflows from emerging supply disruptions in the mining
market financial assets. At the same and agriculture sectors, as well as
time, ongoing risk-off developments commodity exports adversely affected
such as the global trade tensions Malaysia’s economic performance,
further contributed to sudden shifts resulting in a larger-than-expected
in investor sentiments and episodes moderation in growth.
of financial market volatility. As funds
shifted away from emerging market
157
