REPORT: Malaysia 2017 Real GDP To Strengthen Further Between 5.2 And 5.7 Pct
KUALA LUMPUR, Oct 27 (Bernama) -- The Malaysian real gross domestic product (GDP) is expected to strengthen further between 5.2 per cent and 5.7 per cent this year, surpassing the earlier estimate of above 4.8 per cent, underpinned by strong domestic demand and improved external sector.
Bank Negara Malaysia had earlier raised its 2017 growth forecast to above 4.8 per cent versus the last forecast made in made in March, which predicted growth of between 4.3 per cent and 4.8 per cent.
The 2017/2018 Economic Report, released by the Ministry of Finance (MOF) in conjunction with the 2018 Budget announced by Prime Minister Datuk Seri Najib Tun Razak today, said economic growth would be supported by stronger performance across all sectors with services and manufacturing remaining the main driver of growth.
"The services sector is projected to expand at a faster rate, reflecting stronger expansion across most sub-sectors, particularly wholesale and retail trade; information and communication; as well as, food and beverages, and accommodation," MOF said.
Value-added of the services sector increased further by 6.1 per cent during the first half of 2017 compared with 5.4 per cent chalked up in the same period a year ago.
For this year, the services sector was expected to record 5.9 per cent growth, accounting for 54.5 per cent of the GDP vis-a-vis 5.6 per cent in 2016 and the sector contributed 54.3 per cent last year.
The ministry also revealed that the indicators selected to measure the services sector showed improvement this year as compared with previous year.
"For tourist receipts, we estimated that it has almost hit RM120 billion compared with more than RM80 billion registered in 2016," it said.
The MOF also revealed that other indicators namely -- distributive trade volume index, information and communication index, air passengers and cargo, as well as, electricity consumption showed improvement against last year.
However, container handling and ship calls were slightly lower compared with the previous year.
As for 2018, the forecast for GDP is at between 5.0 per cent and 5.5 per cent.