KUALA LUMPUR: The Asian Development Bank (ADB) is maintaining its economic growth outlook for Malaysia at 5.3% for 2018 and at 5% for 2019.
According to a Reuters report, ADB’s Asian Development Outlook update issued on Thursday lowered Malaysia’s inflation from 2.6% this year to 2.5%.
As for 2019, it expected the inflation rate to be maintained at 1.8%, it said in the report, which was an update from its April 2018 forecast.
The Manila-based ADB said developing Asia is on track to meet growth expectations for this year and 2019, but warned that rising US protectionist trade measures and countermeasures from China and others pose "a clear downside risk".
ADB kept its 2018 and 2019 economic growth estimates for the region at 6% and 5.9%, respectively. The ADB made only a few small changes in the forecasts made in April.
According to Reuters, ADB now sees Indonesia growing 5.2% this year, instead of 5.3%, and has raised its forecast for Thailand to 4.2% from 4%.
The lender said that it factored tariffs imposed by July 15 into the latest forecasts, though it added "the risk of further ratcheting up of protectionist measures could undermine consumer and business confidence and thus developing Asia's growth prospects."