After a strong finish in 2014, growth moderated in early 2015. Growth is projected to slow to 4.7 percent in 2015 before normalizing to 5.0 percent in 2016. Despite signs of recovery in 2014, exports weakened in 2015. The current account balance should remain in a small surplus. Heightened volatility in the external environment poses risks to Malaysia’s open economy. Introducing the goods and services tax (GST) and scrapping fuel subsidies helped...
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