KUALA LUMPUR: The World Bank has revised Malaysia’s GDP forecast this year to 4.9 per cent, up by 0.6 per cent.
Similarly, World Bank has also revised up the nation’s 2018 and 2019 GDP forecasts by 0.4 per cent and 0.5 per cent, respectively.
Malaysia’s positive upwards revisions of GDP were reported in World Bank’s bi-annual Global Economic Prospects report which was released on Sunday.
“The upward revision of forecast for 2017 stems off from robust economic growth of 5.6 per cent, in the first quarter of the year, announced last month.
“This demonstrates World Bank’s confidence in the strength of our economy. At the same time, research houses – Citi Research and UOB Bank Malaysia – echoed the same sentiment when they have revised upwards Malaysia’s 2017 GDP growth forecast up to 5 per cent,” said Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan in a statement today.
Rahman observed that improving global trade condition have fuelled Malaysia’s strong economic growth, spurring rising import demand from advanced economies and also increasing trade flows with China.
He said that Malaysia has recorded 24.1 per cent increase in exports in the first quarter of 2017, with exports to USA, Japan and EU rising by 12 per cent, 18 per cent and 22 per cent, respectively, while total trade with China expanded by 34 per cent.
“World Bank foresees Malaysia’s economy remaining solid. The fiscal policy adjustment, executed in response to plummeting energy prices, has reduced the impact on fiscal balance as government continues to meet its deficit target every year,” he said.