World Bank Expects Malaysia's Economy to Grow by 4.3% In 2017

The World Bank expects Malaysia's economy to grow by 4.3% in 2017 and further expand by 4.5% next year as an adjustment to lower energy prices eases and commodity prices stabilize.

    This signals a moderate expansion path from a low of 4.2% growth expected in 2016, Malaysian New Agency (Bernama) reported. 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% in 2017 from 5.1% in the year just ended, thanks to a rise in private investment. "Malaysia is expected to accelerate to 4.3% in 2017 as adjustment to lower energy prices eases and as commodity prices stabilise," it said. 

    The country's GDP growth narrowed to 5% in 2015 from the 6% 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. 

    On outlook for growth in the East Asia and Pacific regions, the World Bank projected it to ease to 6.2% this year following the slowing growth in China, which is moderating by a pick-up in the rest of the region.

    Meanwhile, for the global economy, the World Bank forecasts it to accelerate moderately to 2.7% in 2017 after a post-crisis low last year. Obstacles to activity recede among emerging markets and developing economy commodity exporters, while domestic demand remains solid among emerging and developing commodity importers.