KUALA LUMPUR (Bernama) – The World Bank expects Malaysia’s economy to grow by 4.3 per cent in 2017 and further expand by 4.5 per cent 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 per cent 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 per cent in 2017 from 5.1 per cent in the year just ended, thanks to a rise in private investment.
“Malaysia is expected to accelerate to 4.3 per cent in 2017 as adjustment to lower energy prices eases and as commodity prices stabilise,” it said.
The country’s GDP growth narrowed to five per cent in 2015 from the six per cent 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.