The Malaysian economy expanded 5.9 per cent in 2017 with private sector demand continuing to be the primary driver of growth while the outlook for 2018 remained favourable, supported by domestic demand, said Bank Negara Malaysia (BNM). – File photo.
KUALA LUMPUR: The Malaysian economy expanded 5.9 per cent in 2017 with private sector demand continuing to be the primary driver of growth while the outlook for 2018 remained favourable, supported by domestic demand, said Bank Negara Malaysia (BNM).
In the fourth quarter of 2017, the gross domestic product (GDP) also grew by 5.9 per cent.
The 2017 GDP is higher than the 4.2 per cent and 5.0 per cent registered in 2016 and 2015, respectively. Malaysia’s fourth quarter GDP growth in 2016 stood at 4.5 per cent.
From the supply side, all economic sectors continued to expand, except for the mining sector, the central bank said in a statement today.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew 0.9 per cent (3Q 2017: 1.8 per cent), it added.
BNM said headline inflation moderated to 3.5 per cent in 4Q 2017 (3Q 2017: 3.6 per cent) mainly due to lower inflation in the housing, water, electricity and gas, and transport categories.
For 2017 as a whole, headline inflation averaged at 3.7 per cent (2016: 2.1 per cent).
“The headline inflation is expected to moderate in 2018, reflecting a smaller contribution from global cost factors and a stronger ringgit compared with 2017,” it said.
BNM added that the upward pressures from the robust demand condition would be contained by continued spare capacity in the labour market and on-going investment for capacity expansion.
The trajectory for headline inflation, however, would remain dependent on the trend of global oil prices which remained highly uncertain. – Bernama