Malaysia not entering recession, not suffering deflation

In a strong position: Nor Shamsiah presenting Bank Negara 2018 annual report. She says the country is facing external headwinds from a position of strength, reinforced by a diversified economy, a resilient external position and a strong financial system.

KUALA LUMPUR: Malaysia is neither entering a recession nor is it suffering from deflation, Bank Negara says.

Despite tough economic headwinds, central bank governor Datuk Nor Shamsiah Mohd Yunus asserts, Malaysia is expected to remain on a steady growth path this year, supported by resilient domestic demand. Underlying inflation, on the other hand, is expected to be broadly stable, sustained by steady expansion in economic activity in the absence of excessive demand pressure, she said.