A significant decline in commodity prices would pose immediate risks. Moderating demand from China and weak growth in advanced economies, combined with expanding supply from surging investments over the past five years suggest downside risks for commodity prices. Although Malaysia can cope with additional declines in prices, sharp downward movements could potentially lead to deficits in the current and fiscal accounts, as well as slower economic growth from delays in energy-related investments.
Posted on: Wed, 26 Jun 2013 08:39:26 +0000
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