KUALA LUMPUR: Malaysia’s real Gross Domestic Production (GDP) is expected to grow at a moderate 4.2 per cent this year, driven by private sector expenditure.
Malaysian Institute of Economic Research (MIER) Executive Director Emeritus Professor Dr Zakariah Abdul Rashid said domestic demand would likely grow by 4.5 per cent against 5.1 per cent recorded in 2015.
“The growth will be underpinned by private investment growth of 5.6 per cent and private consumption growth of 5.2 per cent,” he said at the 21st Corporate Economic Briefing organsied by MIER here yesterday.
Zakariah said public sector investment would pick up in the short-term, growing at 1.4 per cent compared with a negative one per cent in 2015.
“Public sector expenditure next year is expected to be influenced by continuing fiscal consolidation as oil prices are expected to remain depressed,” he said.
In 2015, private investment grew 6.4 per cent while private consumption expanded 6.0 per cent.
He said Bank Negara Malaysia would manage the tight liquidity condition in favour of stimulating production and other economic activities by maintaining a larger proportion of shorter-maturity monetary instruments such as money market borrowings and repos, in its policy mix.
As for 2017, Zakariah anticipated that real GDP would increase moderately, registering a growth of between 4.5 and 5.5 per cent.
He said domestic demand, which would increase 5.0 per cent next year, would continue to drive the Malaysian economy. — Bernama