Malaysia: MIER revises growth forecast down to 4.7%

• Oct 17, 2018

KUALA LUMPUR: The Malaysian Institute of Economic Research (MIER) has revised downwards the country’s 2018 gross domestic product (GDP) growth forecast to 4.7% from an earlier 5.5%.

Executive director professor Zakariah Abdul Rashid said the lower target was due to a moderation in global demand and over-reliance on private consumption, amid weakened investment activities to steer growth.

“Domestic demand continues to drive growth and is expected to grow at 5.5% (this year), slower than last year’s 6.5%,” he told a press conference on MIER’s Malaysian Economic Outlook.

This, he said, is underpinned by robust though moderating growth in private consumption, compensating for the moderation in public consumption.

“The modest growth in public consumption is partly due to the government’s policy on cautious spending in its effort to address the issue of high public debt and simultaneously with the reduced revenue without the goods and services tax (GST),” he added. — Bernama

Source: https://www.thestar.com.my/business/business-news/2018/10/17/mier-revises-growth-forecast-down-to-47/#TiKsi96FzzqH5piR.99