Economic growth seen at 4.5%

BANK Negara has projected economic growth at 4.5% this year, lower than last October's budget forecast of 6.5%, but still decent in view of heightened geopolitical tensions and uncertain external conditions. 

“The forecast of 4.5% is the underlying growth potential of the economy based on its fundamentals, expected modest growth of external economies, continued regional trade, and our flexibility to respond if the war in Iraq is prolonged,'' said governor Tan Sri Dr Zeti Akhtar Aziz at a press conference in Kuala Lumpur yesterday.