MIER maintains growth 5.40% for 2008

KUALA LUMPUR, Nov 27 (Bernama) -- The Malaysian Institute of Economic Research is maintaining its downward revision of a 5.4 percent growth next year from 5.8 percent projected earlier, but says a recession in the U.S. economy could make matters worse.Growth projections for this year is maintained at 5.7 percent.The revised figures were also in light of the International Monetary Fund's downward revision of global economic growth, MIER's executive director Mohamed Ariff Abdul Kareem, said here today.Although domestic demand would be propped up somewhat prior to the general elections, the global economy could grow at a slower pace owing to the fallout from the subprime turmoil, he said.He said that the spurt in oil prices was another factor which has the potential to derail the global economy.Oil prices have been skyrocketing to record levels of almost US$100 per barrel.However, he said that with the expected rebound in the global economy in 2009, the Malaysian economy could shift towards its potential growth path, expanding by 5.7 percent.MIER, however is maintaining 5.7 percent growth forecast for 2007.