Malaysia’s economic growth sharply lower at 5.1 percent in 2011, more risks seen this year

Malaysia’s central bank says economic growth slowed sharply to 5.1 percent last year and warns prospects for 2012 are clouded by Europe’s ongoing debt crisis.

Bank Negara Malaysia says growth cooled to 5.2 percent in the fourth quarter but was still robust as sustained domestic demand helped offset slowing exports.

The economy grew 5.8 percent in the third quarter and 7.2 percent in the second quarter and 4.8 percent in the first quarter.

It says this put full-year growth at 5.1 percent, down from 7.2 percent in 2010. The growth figure is on the low side of the official forecast of 5 to 6 percent growth for 2011.

Bank Negara said Wednesday the challenging external environment could provide greater downside risks to the economy this year.

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