4Q GDP to be boosted by higher industrial activities, says RHB

Business & Markets 2013
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Wednesday, 11 December 2013 16:48
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KUALA LUMPUR (Dec 11): RHB Research Institute Sdn Bhd said the pick-up in
industrial activities is an indicator of an improvement of economic activities in
the fourth quarter.
The research house now expects a real GDP of 5.4% for 2014, and an
estimate of 4.7% for 2013.
It said that the improvements in industrial activities were possible through
sustained increase in domestic demand and gradually-improving external
demand.
“Domestic demand is envisaged to remain resilient and act as a main engine of
growth for the economy in 2014, driven by a new investment cycle, arising from
the government’s efforts to transform the economy as well as investments in the
various economic corridors and oil & gas projects,” said RHB.
Exports, on the other hand, will be driven by the recovering economies of US and Japan, while Europe is stabilising and China’s slowdown
is bottoming out. Real exports are forecast to increase to 4.5% for 2014.
“Although challenges linger, we believe the global economy is still on track to chart a stronger growth in 2014,” it said.
In a press release earlier today, the Department of Statistics reported that industrial production rose 1.7% year-on-year (y-o-y) for the
month of October, compared to 1.0% in September and 2.7% in August.
It said the increase was due to the improvements in the manufacturing and electricity output for the month of 3.3% and 4.8% respectively,
while mining output had declined by 3.6%.