KUALA LUMPUR: Malaysia’s full-year economic growth is expected to remain solid at 5.8 percent y/y, according to a recent report from ANZ Research. That compares to the previous quarter’s 6.2% print and a median estimate of 5.55% on year growth in a Nikkei Markets survey of economists.
Growth is expected to remain favourable in 2018, with domestic demand continuing to be the key driver of growth. The external sector performance also improved a further 5.4 per cent as real import growth moderated faster than real export growth.
The 2017 GDP is higher than the 4.2 per cent and 5.0 per cent registered in 2016 and 2015, respectively. The moderation in investment was largely in the public sector presumably reflecting the lumpiness of government infrastructure projects. Meanwhile, services and manufacturing sectors drove growth on the supply side during the fourth quarter past year.
Bank Negara said the nation’s 4Q17 inflation moderated. Malaysia’s growth recovery strengthens Prime Minister Najib Razak’s position as he seeks to retain his power in a general election this year.
