Malaysia's GDP to grow 5.2% in 2014

Malaysia's Gross Domestic Product (GDP) is expected to grow 5.2 percent this year, according to HSBC Asean economist Lim Su Sian Friday. In the statement on the Economic Outlook 2014, Lim expects the GDP for 2013 to record 4.6 percent growth driven mostly by domestic factors such as a rise in household income. "Given moderate improvements in the global backdrop, exports should gain some momentum and to a degree will be offset by slower domestic activity as some of the headwinds start to set in," Lim said. Moreover, according to Lim, the government is tightening its belt because the fiscal consolidation is important right now and this will add to inflationary pressure. She also forecasts the inflation rate to grow to 2.4 percent on average with an upward risk to this number. Despite the headwinds expected to offset Malaysia's growth, she believes Malaysia's fundamentals are still strong. "Out of all the countries in the region, Malaysia still offers one of the most stable growth outlooks as it no longer faces the uncertainty of an election unlike Thailand, Indonesia and India," she added.