Malaysia’s real GDP to be stable at 4 per cent, says RHB Research
KUALA LUMPUR: RHB Research Institute expects Malaysia’s real Gross Domestic Product (GDP) to remain stable at four per cent this year, riding on a sustained increase in domestic demand and resilient consumer spending.
The target was also set on account of a modest rise in public spending and private investment, as well as, a modest pick-up in exports, the research house said.
“We envisage real GDP to sustain at a relatively stable pace of four per cent in 2017 compared with the estimated 4.1 per cent for 2016,” it said in a note following the release of November’s Industrial Production Index (IPI) yesterday.
The IPI rose 6.2 per cent, yearon-year, (YoY) in November 2016 compared with the same month last year, supported by higher growth in all three indices namely manufacturing ( 6.5 per cent), mining (4.7 per cent) and electricity (9.7 per cent).
RHB Research said the acceleration for industrial production was mainly due to higher manufacturing output in November in line with increased exports.
The increase in manufacturing activities was buoyed by the rapid growth rate in the manufacturing of food, beverage and tobacco, petroleum, chemical, rubber and plastic products and non-metallic mineral products and, basic and fabricated metals.
Export-oriented electrical and electronics (E&E) products also gained pace in line with higher E&E exports.
Mining output also grew to 4.7 per cent, YoY, in November while electricity output rose 9.7 per cent, YoY, during the month. — Bernama