Malaysia is expected to register real gross domestic product (GDP) growth of 5.4% this year, according to World Bank's Malaysia Economic Monitor Boasting Trade Competitiveness launched recently.
The report said the GDP was expected to decelerate to 4.6% next year due to base effects and would normalise to five per cent in 2016, according to Malaysia's (Bernama) News Agency.
"The contributions of domestic demand will decline as exports pick up," said the report which was launched by Minister in the Malaysian Prime Minister's Department Abdul Wahid Omar.
The 93-page report also said changes in administered prices and the introduction of the goods and services tax (GST) would lead to a modest pick-up in inflation from 2.1% last year to 3.5% this year and 3.4% next year.
It said the introduction of GST would support consolidation efforts in medium term, and GST was expected to eventually broaden the tax base and diversify it from oil revenue.
"As a result of consolidation, debt levels are expected to decline," it said.