Stories That Caught Our Attention; Global Credit Outlook More Negative This Year, US Economy Dwindled Worse-Than Expected 1.6% Last Quarter As Recession Fears Heighten And Malaysian Producer Price Index Record High In May

Global Credit Outlook More Negative This Year: Moody’s

Moody’s Investors Service (Moody’s) said the outlook for global credit conditions this year has turned more negative amidst slower global growth, rising borrowing costs, surging prices for energy and commodities, supply-chain disruption, and increased financial market volatility.

In a report today said the surge in energy and food costs spurred by the invasion of Ukraine is weakening the purchasing power of households, rising input costs for companies, and dampening investor sentiment. To read the full story click here

U.S. Economy Dwindled Worse-Than-Expected 1.6% Last Quarter As Recession Fears Heighten

The US economy posted its worst annualized showing in the last quarter since the pandemic-induced recession in 2020, according to an updated release Wednesday. Real gross domestic product declined at an annualized rate of 1.6%, according to the BEA’s third and final revisions for the quarter.

It also pointed to an unexpected decline in economic activity on the omicron variant of Covid-19 and decreased government assistance slowed the economy. To read the full story click here

New Ceiling Price for Chicken Up RM0.50 To RM9.40, Takes Effect July 1

Ministry of Agriculture and Food Industries said the Cabinet has decided not to float the prices of chicken, instead, the Government added it will continue with the subsidies and has now confirmed the new standard retail price ceiling of chicken will be RM9.40 per kilogram up RM0.50 from earlier.

During the meeting, the cabinet also agreed to revise the retail price of chicken eggs to RM0.45sen for grade A, while grade B at RM0.43 sen, and grade C at RM0.41 sen in Peninsula Malaysia. Both price cap for chickens and eggs will be effective July 1, 2022. To read the full story click here

Malaysia’s Producer Price Index Continues to Record High Growth Of 11.2% in May  

Malaysia’s Producer Price Index which measures the prices of goods at factory gate increased 11.2 per cent in May 2022 as compared to 11.0 per cent recorded in April 2022, the Department of Statistics Malaysia (DOSM)  said.

It said that the increase was attributed by the Mining index which increased 20.6 per cent as compared to 18.4 per cent recorded in April 2022. Index of Agriculture, forestry & fishing registered an increase of 16.7 per cent (April 2022: 18.0%) mainly led by an increase in indices of Growing of perennial crops (21.2%), Fishing (11.3%) and Growing of non-perennial crops (7.8%). To read the full story click here

S&P Global Rating Revision From Negative To Stable Highlights Malaysia’s Growth Trajectory

S&P’s reaffirmation of Malaysia’s sovereign credit ratings at A- and revision of the outlook from Negative to Stable has been well received by the government.

Ministry of Finance finds the revised outlook as a reflection of Malaysia’s effective COVID-19 policy response, which has enabled a strong economic recovery, as well as the country’s resilience amidst an uncertain and highly challenging global landscape. According to the S&P report “The stable outlook reflects our expectations that Malaysia’s steady growth momentum and strong external position will remain in place over the next two years. We revised the outlook to stable in recognition of Malaysia’s consistently strong growth trend that is faster than sovereigns of similar income level”. In this regard, S&P expects Malaysia’s GDP to grow by 6.1% in 2022 and 5.0% in 2023. Given first-quarter growth of 5%, S&P’s forecast is in line with the Government’s expectation of higher growth in subsequent quarters, and in alignment with the higher end of Bank Negara Malaysia’s official estimate of 5.3 – 6.3%. To read the full story click here

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