Upward GDP revision by world Bank affirms Malaysia can become developed nation by 2020

KUALA LUMPUR: The upward revision of Malaysia’s gross domestic product (GDP) by the World Bank affirmed that Malaysia can achieve its target to become a developed nation by 2020 if the economy continues to register the same rapid growth.

Minister in the Prime Minister’s Depar tment , Datuk Seri Abdul Rahman Dahlan said the present World Bank’s upward revision on Malaysia’s GDP growth proved that Malaysia was on an accelerated track to achieve developed economy status by 2020.

“Bank Ne g a r a ’ s accommodative monetary policy will continue to support our economic growth, while f iscal consolidation wi l l reduce the fiscal deficit and help sustain government debt to GDP ratio,” he said in a statement yesterday.

The World Bank has released its bi- annual ly Global Economic Prospects yesterday, of which, Malaysia’s GDP forecasts for 2017, 2018 and 2019 have been revised upward by 0.6, 0.4 and 0.5 per cent, respectively.

The revised upward forecast for 2017 stems from the robust economic growth of 5.6 per cent in the first quarter of the year, which was announced last month.

Subsequently, the World Bank has forecast that Malaysia’s economy will grow by 4.9 per cent compared with the original 4.3 per cent in its January 2017 report.

This, by far, demonstrated the World Bank’s confidence in the strength of the economy, while simultaneously research houses – Citi Research and UOB Bank Malaysia – echoed the same sentiment when they had revised upwards Malaysia’s 2017 GDP growth forecast to 5.0 per cent, Abdul Rahman said.

Correspondingly, he said the World Bank had foreseen Mal aysi a’s economy to remain solid and the fiscal policy adjustment, executed in response to plummeting energy prices, had reduced the impact on fiscal balance as the government continued to meet its deficit target every year.

“However, stabi l i sing commodity prices have lifted business sent iment and investment. Global pickup in manufacturing and trade, too, has bolstered export growth as evident recently,” he added. — Bernama