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GDP to ease to 5.4% this year, 4.5% in 2019: ICAEW

  • The Institute of Chartered Accountants in England and Wales predicts Malaysia's GDP growth to ease to 5.4% this year from 5.9% last year in line with anticipated regional deceleration.

KUALA LUMPUR, June 7 (Bernama) -- Malaysia's gross domestic product (GDP) growth is expected to ease to 5.4 per cent this year and 4.5 per cent in 2019, from 5.9 per cent last year, in line with the anticipated deceleration in Asean, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

ICAEW Economic Advisor & Oxford Economics Lead Asia Economist, Sian Fenner said export growth across the region is expected to ease from a strong performance in 2017, reflecting softer Chinese import demand and a normalisation in the global electronics cycle.

"We forecast moderate easing in Southeast Asia¡¦s GDP growth to 4.9 per cent in 2018. The slowdown is expected to be broad-based, with only Indonesia growing faster than 2017," Fenner said in a statement.

The institute said though the regional manufacturing Purchasing Managers Index (PMI) largely remained expansionary, it was broadly lower in April, indicating a loss of momentum in activity.

However, outlook remained positive and improving labour market conditions and rising wages in many Southeast Asian economies, bodes well for consumption.

"The momentum from a solid recovery in private investment (excluding construction) across most of Southeast Asia in 2017 is expected to have partly spilled over into 2018.

"An exception to this is the cautious outlook for investments in Malaysia, following the recent election win by the Pakatan Harapan coalition and planned review of all major infrastructure projects," ICAEW said.

 

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