Robust Industrial Activity Points To Strong 1Q Growth

Economic Research	12 April 2017
Malaysia
Economic Update
Robust Industrial Activity Points To Strong 1Q Growth The IPI picked up to 4.7% YoY in February, from +3.5% in January, on the back of a stronger growth in manufacturing activities and electricity output, as exports picked up. We envisage real GDP to hold up at 4.5% YoY in 1Q, matching the growth in 4Q16. Looking ahead we expect GDP to grow 4.5% in 2017, up from +4.2% in 2016, on account of: 1.   A stronger-than-expected recovery in exports, on the improvement in the commodity sector. 2.   A sustained increase in domestic demand, on the back of resilient consumer spending; 3.   A modest rise in public spending and private investments. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184