WB: Malaysian GDP to contract 2.3% in 2009 

(MENAFN) The World Bank (WB) said that Malaysia's near-term outlook shows a slow process of recovery, with real gross domestic product (GDP) projected to contract 2.3 percent this year before growing by 4.1 percent next year, Reuters reported.

In its half-yearly assessment of the economic health of East Asia and Pacific region, WB said that the revised projection showed lower growth compared to -1.0 percent forecast in April.

The current account balance is expected to decline to 12.3 percent of the GDP this year and further to 12.1 percent next year, the international lender said.

WB said that large and timely fiscal stimulus spending in most East Asian and Pacific countries led by China and South Korea, along with a powerful inventory restocking process now underway, have driven the rebound in the region and contributed significantly to confidence in a global pick-up.