Malaysia late in the game, enters recession

Malaysian economy is now in a recession after it contracted for the second straight quarter, a technical definition of a recession.  Following a 6.2% shrinkage in the first quarter, Malaysia GDP declined by 3.9% even after its government’s stimulus spending.  That said, however, economists believe this country will emerge from it by the end of the year.

Malaysia slipped into its first recession in a decade after the economy contracted for a second quarter, even as the central bank predicts a recovery by the end of the year.

“The weak but improving labor market conditions, business sentiment and consumer confidence will provide support to domestic demand,” said Patricia Oh, an economist at TA Securities Holdings Bhd. in Kuala Lumpur. “The recovery will take place gradually and we expect growth to only resume in the final quarter of the year.”

We didn’t really hear much from Malaysia during this whole crisis so although they’re in recession, this isn’t something that’s as worrisome as the others.  From those who slumped into a recession, they would probably have the shortest.

News from Bloomberg

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