RHB: Malaysia GDP to grow at 5.6% in second half 2013

RHB: Malaysia GDP to grow at 5.6% in second half 2013
Business & Markets 2013
Written by Bernama
Monday, 10 June 2013 20:27


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KUALA LUMPUR, June 10 (Bernama) -- The Malaysian economy is expected to
strengthen further to 5.6 per cent in the second half of 2013 on robust growth
in domestic demand bolstered by the implementation of projects under the various
economic programmes.

For the full year, real gross domestic product (GDP) growth was projected to
sustain at 5.1 per cent in 2013, after picking up to 5.6 per cent in 2012,
according to Economic Outlook Report by RHB Research.
The report said growth slackened in the first quarter of the year but would
likely be temporary.
With the incumbent remaining in control of the government, businesses
activities were expected to gradually pick up and economic growth would likely
improve in the second quarter of 2013, the report said.
Meanwhile, consumer spending was projected to remain resilient and private
investment would likely pick up pace in the second half of 2013.
Public consumption and investment, on the other hand, will likely hold up
during the period.
Inflation is set to trend up but would likely remain manageable in 2013, it
said.
RHB Research said Bank Negara Malaysia would likely tolerate slightly
higher inflationary pressure given the challenging external economic environment
and keep its overnight policy rate stable at 3.0 per cent for the rest of the
year.
Externally, despite facing significant challenges, the global economy
is turning more stable and prospects are gradually improving that will
likely increase demand for the country’s exports towards the end of the year.
-- BERNAMA