Tuesday, 25 July 2017
KUALA LUMPUR: The International Monetary Fund has upgraded its 2017 growth forecast for Malaysia to 4.8% from 4.5%. The upgrade was announced at a news conference here yesterday for the release of the fund’s updated World Economic Outlook.
IMF Research Department economic counsellor and director Maurice Obstfeld said there is “a very steady hand in monetary policy for Malaysia … we are optimistic here in Malaysia”.
South-East Asia’s third largest economy is seeing a gradual economic recovery, after tepid demand for Malaysia’s oil and other commodity exports slowed growth over the 2 previous years.
In the first quarter of 2017, Malaysia’s economy grew at a better-than-expected 5.6% annual rate – the quickest pace in 2 years – on robust exports and strong domestic demand. Second quarter growth data will be released on 18 August.
The ringgit has also recovered, from being among the weakest emerging Asian currencies in 2016, following measures by the central bank to reduce volatility in the ringgit and domestic forex market. It has strengthened more than 4% against the dollar this year.
The IMF kept its growth forecasts for the world economy unchanged for this year and next, although it slightly revised up growth expectations for the eurozone and China.
Source by: Internet