KUALA LUMPUR: Maybank Investment Bank has revised its upward growth forecast for Malaysia’s gross domestic product (GDP) in 2017 to between 5.3 per cent and 5.5 per cent from 4.2 per cent recorded last year, on improving key economic fundamentals and macroeconomic conditions.
It said the bank was improving the “big picture” this year and had upgraded the 2017-2018 GDP growth forecast to 5.5 per cent from 5.1 per cent previously, mainly on firmer domestic demand growth as net external demand was expected to be a drag rather than a driver of growth, although less than previously projected.
“The upward revision is mainly on account of faster growth forecast for manufacturing (to +5.6 per cent from +5.0 per cent) and services (to +5.9 per cent from +5.8 per cent) on the supply side, and the higher growth of consumer spending (to +6.7 per cent from +6.4 per cent), private investment (to +9.4 per cent from +8.7 per cent) as well as exports (to +8.5 per cent from +7.8 per cent),”it said in a note yesterday. The investment bank said it expected the above five per cent growth momentum to be sustained in 2018, albeit, at a slightly slower pace of 5.1 per cent (+4.9 per cent previously).
On Friday, the Bank Negara Malaysia reported that Malaysia’s economy in the second quarter 2017 expanded 5.8 per cent from a year earlier, the fastest pace in more than two years and defying expectations for a slight slowdown. The central bank said the continued strength in domestic demand and robust exports were key growth drivers during the quarter. — Bernama