Economics
Malaysia Sees Trade Diversion Cushioning Impact of Tariff Wars
- Trade diversion to add about 10 basis points to GDP growth
- Governor Shamsiah speaks in interview in Kuala Lumpur
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Malaysia’s central bank, which has already downgraded its economic growth outlook for this year amid an escalating trade war, sees a partial offset as companies shift operations from China to sidestep higher U.S. tariffs.
In her first formal interview with the international media since she took office almost a year ago, Governor Nor Shamsiah Mohd Yunus said the trade diversion could add about 10 basis points to this year’s growth rate. That would be on top of Bank Negara Malaysia’s current forecast of 4.3% to 4.8% for 2019.