Home ForexTrading Malaysia’s economy to grow 4.3% this year, says World Bank

Malaysia’s economy to grow 4.3% this year, says World Bank

by Jonathan Adams

The World Bank expects Malaysia’s economy to grow by 4.3% this year and further expand by 4.5% in 2018 as an adjustment to lower energy prices eases and commodity prices stabilise.

This signals a moderate expansion from a low of 4.2% expected in 2016.

The World Bank said in a statement that growth among commodity exporting economies in the region is forecast to accelerate.

“Indonesia is anticipated to pick up to 5.3% in 2017 from 5.1% in the year just ended, thanks to a rise in private investment.

“Malaysia is expected to accelerate to 4.3% in 2017 as adjustment to lower energy prices eases and as commodity prices stabilise,” it said.

The country’s gross domestic product growth narrowed to 5% in 2015 from 6% in 2014.

However, the growth outlook has deteriorated in several small commodity exporters, such as Mongolia and Papua New Guinea, where the terms-of-trade shock has exacerbated domestic vulnerabilities, the World Bank said.

On outlook for growth in the East Asia and Pacific regions, the World Bank projected it to ease to 6.2% this year following the slowing growth in China, which is moderating by a pick-up in the rest of the region.

“Output in China is anticipated to slow to 6.5% in the year.

“Macroeconomic policies are expected to support key domestic drivers of growth despite softness of external demand and overcapacity in some sectors.

Excluding China, growth in the region is seen advancing at a more rapid 5% rate in 2017,” it said.

Meanwhile, for the global economy, the World Bank forecasts it to accelerate moderately to 2.7% in 2017 after a post-crisis low last year.

Obstacles to activity recede among emerging markets and developing economy commodity exporters, while domestic demand remains solid among emerging and developing commodity importers.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more