KUALA LUMPUR: Challenging external conditions both in terms of trade and capital flows will likely lead Malaysia to see a 4.2 per cent growth this year says Allianz.
Chief economist Prof Michael Heise expects it to be supported by consumption activities as a result of households and strong employment.
"Sound private gross fixed capital formation and a more diversified economy will contribute towards the growth," he said at a media briefing.
Private consumption is however expected to moderate to a 4.5 to 5 per cent range this year he added.
" Domestic tightening financial conditions are expected to pose risk to consumption growth as seen from the slower lians growth."
Alluanz Malaysia Bhd which has two insurance subsidiaries in the general and lufe insurance categories also commented on the total insurance market growth last year.
At 4.6 per cent it was markedly below the 10-year average of 6.8 per cent.
It however expects the insurance market to grow by an average 7.0 per cent annually for the next 10 years.