ICAEW: Malaysia’s GDP expected to ease to 5.4pc in 2018, 4.5pc in 2019

Thursday, June 7 2018

ICAEW: Malaysia’s GDP expected to ease to 5.4pc in 2018, 4.5pc in 2019

ICAEW: Malaysia’s GDP expected to ease to 5.4pc in 2018, 4.5pc in 2019 Published 4 minutes ago on 07 June 2018 Malaysia’s gross domestic product (GDP) growth is expected to ease this year. — Reuters pic
KUALA LUMPUR, June 7 — Malaysia’s gross domestic product (GDP) growth is expected to ease to 5.4 per cent this year and 4.5 per cent in 2019, from 5.9 per cent last year, in line with the anticipated deceleration in Asean, according to the Institute of Chartered Accountants in England and Wales (ICAEW).
ICAEW Economic Advisor & Oxford Economics Lead Asia Economist, Sian Fenner said export growth across the region is expected to ease from a strong performance in 2017, reflecting softer Chinese import demand and a normalisation in the global electronics cycle.
“We forecast moderate easing in South-east Asia’s GDP growth to 4.9 per cent in 2018. The slowdown is expected to be broad-based, with only Indonesia growing faster than 2017,” Fenner said in a statement.
The institute said though the regional manufacturing Purchasing Managers Index (PMI) largely remained expansionary, it was broadly lower in April, indicating a loss of momentum in activity.
However, outlook remained positive and improving labour market conditions and rising wages in many South-east Asian economies, bodes well for consumption.
“The momentum from a solid recovery in private investment (excluding construction) across most of South-east Asia in 2017 is expected to have partly spilled over into 2018.
“An exception to this is the cautious outlook for investments in Malaysia, following the recent election win by the Pakatan Harapan coalition and planned review of all major infrastructure projects,” ICAEW said. — Bernama Related Articles