KUALA LUMPUR (Reuters) – Malaysia’s government on Friday unveiled a smaller budget than expected for next year but flagged a wider budget deficit than earlier estimated, and said it would step in with stimulus measures should global demand worsen.
Southeast Asia’s third-largest economy bucked a global cooling trend and grew faster than expected in the first half of 2019, but analysts say the U.S.-China trade dispute and expanding protectionist policies around the world will eventually drag on the export-reliant country.
Nevertheless, Prime Minister Mahathir Mohamad’s government forecast economic growth of 4.8% next year, slightly higher than this year’s projected 4.7%, and pencilled in a very modest improvement in exports. (For budget highlights, click)
Analysts said the growth projection for next year was optimistic, with economic research consultancy Capital Economics forecasting only 4%.
