Malaysia’s economy is expected to continue at a slow pace of 4.6 percent this year, as projected for 2018, as the global environment has become more challenging as trade protectionism persists and global interest rates increase.
In a research note today, RHB Research stated that growth in 2018 for the fourth quarter of gross domestic product (GDP) was expected to moderate to 4.2 percent year – on – year (YoY), compared to 4.4 percent in the third quarter.
In the meantime, Malaysia’s December Industrial Production Index (IPI) growth rose to 3.4 percent YoY, which was consistent with the research firm’s estimate, but higher than Bloomberg’s 2.7 percent consensus.
“This comes as growth of manufacturing outpost in line with a pick-up in exports, while mining activities rebounded from a decline in the previous month,” it said.
However, RHB Research said the pick-up towards the end-2018 was unable to prevent IPI from easing to its weakest annual pace in seven years at 3.1%, on the back of easing external demand for manufacturing goods and supply disruptions in the mining sector. — Bernama