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Q2 GDP grows 5.8%

  • A new growth target for the year will be announced in the upcoming Budget.

KUALA LUMPUR, Aug 18 (Bernama) -- Malaysia's economy recorded a robust expansion in the second quarter (Q2) of 2017, recording a 5.8 per cent growth in gross domestic product (GDP) compared with 4.0 per cent in the same quarter last year.

The expansion in Q2 2017, which is better than the 5.6 per cent registered in the first quarter of 2017, was boosted by solid growth in gross export, services and manufacturing sectors, as well as private investment.

From the supply side, the improvement was driven by a broad-based expansion across all major sectors, said Bank Negara Malaysia in a statement here.

"Going forward, the Malaysian economy is expected to grow at above 4.8 per cent in 2017 given the strong growth in the first half of 2017 at 5.7 per cent," it added.

The central bank said domestic demand was projected to underpin this expansion while on the external front, exports were expected to benefit from the stronger-than- expected improvement in global growth.

"Headline inflation is expected to moderate further in the second half of 2017, reflecting the waning effect of global cost factors. For 2017 as a whole, it is expected to average within the forecast range of 3.0 per cent to 4.0 per cent," said the central bank.

Meanwhile, on a quarter-on- quarter seasonally-adjusted basis, the economy grew by 1.3 per cent (Q1 2017: 1.8 per cent).

The headline inflation declined to 4.0 per cent due mainly to lower domestic fuel prices.

Meanwhile, Bank Negara governor Datuk Muhammad Ibrahim said Malaysia's economy is expected to record a higher growth this year, exceeding the initial target of between 4.3 per cent and 4.8 per cent on the back of the strong first-half performance.

"A new number (target) will be announced by the Finance Minister in the upcoming Budget.

"We at Bank Negara are working with the ministry and our forecast is that it will certainly be more than 4.8 per cent." he said

 

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