
“The ringgit, however, is still vulnerable to global swing in risk appetite given that the US fiscal brinkmanship will likely come back to haunt the economy in the early part of the year and expectation of the QE tapering remains,” it warns.
Risks to outlook
According to ADB, economies in developing Asia, including Malaysia, in general face three major risks. These include increased volatility in global and regional financial markets due in particular to uncertainties over monetary and fiscal policies in advanced economies; a more pronounced slowdown in major regional economies, such as China, India and Indonesia, which will affect other economies within the region; and a disruption in the recovery of the Group of Three, or G3, economies, namely the United States, Europe and Japan.
According to ADB, developing Asia’s growth will likely slow slightly this year before picking up next year. In general, it expects developing Asia to grow 6% in 2013, slightly below the 6.1% growth last year, before recovering to a 6.2% growth in 2014.
Source: theSTAR 26-10-2013
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