Malaysia expects to post growth of seven percent for its gross domestic product (GDP) in 2004, Prime Minister Abdullah Ahmad Badawi said today.

"I have always been saying that we anticipate seven percent but let's see," Abdullah, who is also finance minister, told a news conference.

"We have done so well in the first three quarters so even a slightly more than five percent growth in the fourth quarter would put us somewhere around seven percent for 2004," he said after a briefing by the central bank.

Asked if Malaysia would raise interest rates, he said: "We are looking into that. We will decide when we think it is appropriate. If not, then we won't."

Tolerable inflation

Central Bank Governor Zeti Akhtar Aziz later told reporters that "while inflation remains in a tolerable range, interest rates will continue to support private sector economic activity."

Economic growth data for the fourth quarter is expected to be released by the central bank on Monday.

The bank had forecast 2004 GDP growth at seven percent, with 2005 growth at six percent.

The economy grew by 7.8 percent, 8.2 percent and 6.8 percent respectively in the first, second and third quarters of 2004.

For the fourth quarter, the central bank expects GDP growth to moderate at 5-7 percent.