Economists have predicted Malaysia’s 1QGDP growth rate to be announced by Bank Negara Malaysia tomorrow to be between 4.6 to 4.9% growth driven by impressive gains in all sectors of the economy.
Socio-Economic Research Centre executive director Lee Heng Guie expects a GDP growth rate of 4.6% to 4.8% in 1Q22. He said that the manufacturing and services sectors are expected to drive economic growth in the first quarter.
“The low base effect from the first quarter of 2021 when the economy declined by 0.5% y-o-y would also lend support coupled with the reopening of the economy that started in the last quarter is likely to lend support in the economic growth, “he said
Lee said that the various businesses that had been affected by operational issues have started to go fully operational and this too would start allowing the economy to achieve its full potential.
Head Economist at CGS-CIMB Securities Nazmi Idrus has projected the 1QGDP growth rate to be about 4.9% driven by all engines of the economy that show very good performance.
He said that BNM had said in a statement after the Monetary policy Meeting yesterday, BNM said that growth is “on a firmer footing”, indicating support for domestic demand, export growth, as well as the labour market.
Interestingly, Nazmi said that it was missing from several past statements, BNM added “Investment activity and prospects have also improved, underpinned by the realisation of multi-year projects”, suggesting that growth momentum is improving in nearly all segments of the economy.
“Given the hawkish tilt in the MPC statement for the Malaysian economy, we suspect 1Q22 GDP growth is likely to be robust, “he said BNM surprised the market yesterday with a 25bp OPR hike to 2.00%, vs. consensus expectations of many economists that predicted no change
