Malaysia 'well-positioned' to weather global crisis: IMF
The International Monetary Fund on Friday said that Malaysia has been hit hard by the global economic crisis but that sound policies had positioned the country to cope with the downturn.
The IMF said the Malaysian authorities' fiscal response to the crisis "has been appropriately large."
However, there was "some limited room" for additional stimulus if the downturn proves longer or deeper than expected, the IMF said following a review with Malaysian officials on July 16.
"Executive directors commended the Malaysian authorities for sound macroeconomic management in difficult circumstances, and observed that Malaysia is well-positioned to weather the severe impact of the global downturn," the report said.
"A strong external position, robust balance sheets of household and corporate sectors, and sound financial system should lessen the blow from adverse external shocks," it said in a statement.
The Article IV consultation is a review usually held annually with each of the IMF's 186 member nations.
The IMF said that economic activity and inflation have slowed considerably since mid-2008, putting the economy on track to contract for the first time in 10 years.
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