IMF upgrades forecast for Malaysia's 2017 growth to 4.8pct

KUALA LUMPUR: The International Monetary Fund has upgraded its 2017 growth forecast for Malaysia to 4.8 percent from 4.5 percent.

The upgrade was announced at a news conference in Kuala Lumpur on Monday for the release of the Fund's updated World Economic Outlook.

Maurice Obstfeld, economic counsellor and director of the IMF Research Department, said there is "a very steady hand in monetary policy for Malaysia... we are optimistic here in Malaysia".

Southeast 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 two previous ears.

In the first quarter of 2017, Malaysia's economy grew at a better-than-expected 5.6 percent annual rate - the quickest pace in two years - on robust exports and strong domestic demand.

Second-quarter growth data will be released on Aug. 18.

The Malaysia currency 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 percent 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. - Reuters