|Strong domestic demand in 2nd quarter|
What the 5.4% growth means. I was waiting for Anwar Ibrahiim to belittle Najib Razak's administration over the 5.4 per cent GDP growth. He didn't because as the former Minister of Finance, he probably knew that Malaysia's second quarter expansion is no small feat. While five-point-four is not exactly a whopper by the high standards Dr Mahathir had set in order to achieve the 2020 developed country status, it is a more-than-decent performance, indeed. Most governments this week could not convey the same kind of good news to their people. Singapore reported a 0.7 per cent contraction for the same quarter, the only good news was that it was better than it had feared. Japan grew 1.4 per cent, signalling a slowdown. The European economies are still paying dearly for all sorts of mistakes - things will get worse before they get better.
There were more good tidings. According to the Economics Malaysia blog, the inflation rate is also decelerating.
"The overall index is down, core inflation increased slightly on the month, but was offset by a decrease in the pain index. In fact the annual rate of increase in food and transport prices is now at its slowest pace in more than two years (since March 2010)." - July 2012 CPI: Still Retreating
Yes, we the citizens of Malaysia would still like cheaper education, cheaper petrol, and cheaper cars. But talk has also become even cheaper now that we know for sure that the economy is in very good hands.