Page 95 - Official Year Book 2019
P. 95
nomic And
Monetary Developments 2019
The global economy and global trade expanded by 2.9 per cent and 1.0 per cent, respectively
in 2019 (2018: 3.6 per cent and 3.7 per cent, respectively), which were the lowest since 2009.
The sharp moderation in growth of both economic and trade activities volatility. Throughout the year, the trade dispute between the US and
was due mainly to the protracted and unresolved global trade tensions PR China broadened to encompass more products and moved beyond
which exacerbated the cyclical downturn in global manufacturing tariffs on goods to include companyspecific sanctions, particularly
and investment activities. Firm consumer demand and timely policy in the technology industry. Increasingly, the trade dispute has led
actions, however, provided some support to global growth. multinational corporations to reassess their global production
strategies, prompting a reconfiguration of global value chains.
The cycles of intensification and de-escalation of trade tensions in
2019 generated significant uncertainties, which affected business The trade dispute compounded the ongoing cyclical downturn
sentiments and resulted in intermittent spikes in financial market in global trade and dampened investment activity. Amidst weak
demand conditions, the automotive industry was severely affected
by supply disruptions, while the tech cycle was on a downturn.
Investment activity in many major economies was thus weakened
by the concurrent effects of a poor near-term business outlook and
uncertainties surrounding the trade dispute.
Despite weaker trade and investment activities, steady consumption
demand provided some support to global growth. Domestic demand
in major economies was supported by resilient private consumption,
underpinned by favourable labour market conditions with stable wage
growth and lower unemployment rates. Expansionary fiscal policies
in the US and most emerging market economies (e.g. PR China and
developing Asia) also helped to cushion growth.
MALAYSIA BAHARU 2019 Official Year Book 83
Monetary Developments 2019
The global economy and global trade expanded by 2.9 per cent and 1.0 per cent, respectively
in 2019 (2018: 3.6 per cent and 3.7 per cent, respectively), which were the lowest since 2009.
The sharp moderation in growth of both economic and trade activities volatility. Throughout the year, the trade dispute between the US and
was due mainly to the protracted and unresolved global trade tensions PR China broadened to encompass more products and moved beyond
which exacerbated the cyclical downturn in global manufacturing tariffs on goods to include companyspecific sanctions, particularly
and investment activities. Firm consumer demand and timely policy in the technology industry. Increasingly, the trade dispute has led
actions, however, provided some support to global growth. multinational corporations to reassess their global production
strategies, prompting a reconfiguration of global value chains.
The cycles of intensification and de-escalation of trade tensions in
2019 generated significant uncertainties, which affected business The trade dispute compounded the ongoing cyclical downturn
sentiments and resulted in intermittent spikes in financial market in global trade and dampened investment activity. Amidst weak
demand conditions, the automotive industry was severely affected
by supply disruptions, while the tech cycle was on a downturn.
Investment activity in many major economies was thus weakened
by the concurrent effects of a poor near-term business outlook and
uncertainties surrounding the trade dispute.
Despite weaker trade and investment activities, steady consumption
demand provided some support to global growth. Domestic demand
in major economies was supported by resilient private consumption,
underpinned by favourable labour market conditions with stable wage
growth and lower unemployment rates. Expansionary fiscal policies
in the US and most emerging market economies (e.g. PR China and
developing Asia) also helped to cushion growth.
MALAYSIA BAHARU 2019 Official Year Book 83
