Interview: The Federal Reserve ’s interest rate hike will have an impact on the economist of ASEAN countries -Visiting Malaysian economist Li Xingyu

Xinhua News Agency, Kuala Lumpur, August 7th. Li Xingyu, an executive director of the Social Economic Research Center of the China General Chamber of Commerce in Malaysia, said in an exclusive interview with Xinhua News Agency reporters at Kuala Lumpur that the recent slowdown in US economic growth and the Federal Reserve ’s interest rate hike will be to Malaysia and others ASEAN countries have an impact, including reducing exports of ASEAN countries and affecting the region to attract foreign capital.

Li Xingyu said that the Federal Reserve's recent interest rate hikes brought down downward pressure on the currency of Malaysia Linjit and other emerging market countries. Enterprises and governments of emerging economies need to bear higher loan costs, which increases debt burdens in developing countries.

Data released by the US Department of Commerce on July 28 showed that the annual rate of GDP in the second quarter of this year was calculated by 0.9%by annual rate. "Wall Street Journal" and Bloomberg News reported that after two consecutive quarters of shrinking, the US economy fell into a technical recession.

Li Xingyu pointed out that a number of economic indicators show that the US economic growth will still slow down in the next quarter, which will have a negative impact on the global economy. In Malaysia and ASEAN, exports are mainly manifested, especially electronic and electronic products, furniture, and furniture. Rubber products, chemical products, etc. High expectations for US interest rates also cause fluctuations in regional financial markets.

In the face of this situation, "Malaysia must continue to enhance economic and financial toughness to alleviate the impact of external shocks and improve the domestic investment environment. Agreement (CPTPP) will also help Malaysia's economic recovery, "Li Xingyu said. (Xinhua News Agency reporter Mao Pengfei Wang Yi)

(Mao Pengfei Wang Yi)

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