The World Bank expects Malaysia’s economy to grow by 4.3% in 2017 and further expand by 4.5% next year as an adjustment to lower energy prices eases and commodity prices stabilise.
This signals a moderate expansion path from a low of 4.2% growth expected in 2016.
In a statement, the World Bank said 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 GDP growth narrowed to 5% in 2015 from the 6% recorded 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 five per cent 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.– Bernama