CIMB lowers Malaysia's 2013 GDP growth to 5.1%

KUALA LUMPUR: CIMB
Economics Research has revised downwards its growth forecast for the
Malaysian economy to 5.1% from 5.5% previously after the
weaker-than-expected 4.1% growth in the first quarter ended March 31.
It
said on Thursday it expected real GDP growth to improve on firmer
domestic demand, especially investment with the removal of the political
overhang.
"Given the slower than expected growth in Q1, 2013
amid a moderate export recovery, we cut our full-year GDP growth
estimate to 5.1% from 5.5% previously," said the research house.
Bank Negara Malaysia announced on Wednesday that Q1, 2013 GDP grew at a slower pace of 4.1% from 6.5% in Q4, 2012 on sluggish exports.
CIMB Research
said while domestic demand kept the economy going, Q1, 2013 GDP growth
was lower than its 4.5% to 5.0% forecast and market expectations of
5.2%.
"We expect real GDP growth to grow 5% in 2Q13, partly aided
by election spending and partly, the run-up in equity prices after the
Barisan Nasional's (BN) victory.
"With the removal of the
political overhang, we believe that broad policy continuity and
certainty as well as the faster implementation of ETP projects (including MRT) will sustain the investment momentum," it said.
CIMB
Research expected export growth to improve going into H2, 2013, backed
by a more stable recovery in advanced economies. It also expected
domestic demand to continue to underpin growth.