The World Bank expects Malaysia to record a modest gross domestic product (GDP) growth of 4.3 per cent this year from 4.2 per cent in 2016, driven by private consumption.
But the GDP is projected to accelerate in 2018 and 2019.
Higher government subsidies, more infrastructure spending and rising exports are the factors capable of pushing up Malaysia’s economy in 2017, and improving next year to up to 4.5 per cent.
World Bank Country Manager/Representative to Malaysia Faris Hadad-Zervos said: “We know the global environment is such that there is a lot of uncertainty and the economy also depends on the trade environment and trade protectionism.
“It also depends on how the US economy is going to fare and any potential US Federal Reserve rate hike impact, and Malaysia being an open economy is susceptible to all these risks.”
He said this after a briefing by the World Bank on the East Asia and Pacific Economic Update, the bank’s semi-annual review of the region’s developing economies, here today.