MIER executive director Dr Zakariah Abdul Rashid sees higher GDP growth in 2017
KUALA LUMPUR: The Malaysian Institute of Economic Research (MIER) has revised upwards its Gross Domestic Product (GDP) growth outlook to 4.8% this year.
The think-tank said on Tuesday the GDP was higher than the earlier forecast of 4.5% due to the stronger-than-expected growth of 5.6% in Q1.
MIER executive director Dr Zakariah Abdul Rashid said the forecast was driven primarily by domestic demand and reinforced by stronger external demand.
"Domestic demand is expected to grow by 4.6% and private consumption at 6%. The growth in goods and services exports, as well as imports this year, are maintained at 1.8% and 1.5%,” he said.
On inflation, he said it was expected to rise 3.6% this year – a significant increase for only 2.1% last year – due to higher transport costs and the weak ringgit.
On the ringgit, he expected to remain stable and trade between 4.2 and 4.25 to the US dollar.
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