Current Account Surplus To Narrow In 2017 Amid Strong Import Outlook

Economic Research	22 May 2017
Malaysia
Economic Update
Current Account Surplus To Narrow In 2017 Amid Strong Import Outlook The current account surplus in the balance of payments narrowed to MYR5.3bn in 1Q17, due to a smaller surplus in the merchandise trade balance. Moving forward, we are revising our current account surplus forecast downward to MYR21.4bn or 1.6% of GDP in 2017, from a previously estimated surplus of MYR33.7bn (MYR25.1bn or 2% of GDP in 2016), on account of: 1.   Smaller merchandise trade surplus, on the back of a stronger import outlook that will likely outpace the increase in exports; and 2.   Larger deficits in the services and income accounts due to improvement in economic growth. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184