World Bank expects 4.5pct growth for M’sia
The World Bank expects Malaysia's gross domestic product (GDP) to record 4.5 percent growth next year and 2017, a revision based on the country's improved trade data.
World Bank Group’s Southeast Asia regional director Ulrich Zachau said the revision from 4.2 percent made earlier was in response to new data received that showed an improvement in Malaysia's overall export performance recently, particularly in the electrical and electronics sector.
"Based on the data available, we now forecast a 4.5 percent growth next year. This is still a robust strong growth performance if we consider the global growth environment that is not favourable".
"As the data come out, we continually adapt and adjust. Possibly, if the data come out again more stronger even, it may be adjusted further," Zachau told reporters after the launch of the World Bank's Malaysia Economic Monitor report in Kuala Lumpur today.
The report projected Malaysia's economic growth to remain at 4.7 percent in 2015, and ease to 4.5 percent in 2016, an outlook that reflected slowdown in domestic demand in the course of 2015 from tighter fiscal conditions, which are expected to continue in 2016-2017.
Overall, domestic demand was projected to grow, remaining the main driver of growth in a context of soft global demand, the report said.
At the 10th Asia Economic Summit earlier this month, World Bank Chief economist for East Asia and Pacific Region, Sudhir Shetty, had predicted Malaysia to record 4.2 percent growth in 2016 before gradually rising again in 2017.
Shetty was reported as saying that while Malaysia's current policies provided a good base, it needed to consider further improving public sector performance, accelerate human capital development and re-engineer economic growth in order to navigate the global uncertainties.
- Bernama
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