A corner of Kuala Lumpur (Photo: theedgemarkets.com)Kuala Lumpur (VNA) - Fitch Solutions Macro Research,a rating agency of Fitch Group, has cut its growth forecast for Malaysia for2018 to 4.6 percent comparedwith its previous forecast of 5.1 percent, following aweaker-than-expected performance in the third quarter of the year, according toThe Star.
“The 2018 revisionreflects the weaker-than-expected third quarter 2018 results and ourexpectations for growth to slow further in the fourth quarter,” it said in astatement.
The country’s GDP growth reached 4.4 percentin the third quarter, slightly down from 4.5 percent in the preceding quarter.
The growth moderation represented the fourth consecutive quarter of GDPslowdown – and the slowest pace in two years – for Malaysia.
In addition, Fitch Solutions also revised its 2019 GDP growth forecast forMalaysia down to 4.2 percent from 4.5 percent previously.
“Malaysia’sgrowth in 2019 would likely be negatively impacted by broad-based headwindsfrom nearly all the expenditure components of the GDP, except privateconsumption, which we expect to be supported by a large, one-time repayment oftax refunds in 2019,” it added.
Fitch Solutions said the revision to the 2019figure reflected its concerns about exports and investment growth for nextyear.
It expected Malaysia’s 2019 external outlookto be negatively affected by the combination of a slowing semiconductor cycleand a likely escalation of the US-China trade dispute amid still-low palm oilprices, which should weigh on the country’s trade balance.
“Moreover, investment, particularly foreigninvestment, is likely to remain subdued due to continued policy uncertainty,” itsaid.-VNA
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