KUALA LUMPUR (Oct 10): The Socio-Economic Research Centre (SERC) expects Malaysia's gross domestic product (GDP) growth rate to moderate slightly in the second half of 2017 (2H17), due mainly to a higher base effect compared to 1H17.

"Our projection for GDP growth for 2H17 is expected to average at about 5.3% compared to 5.7% in 1H17 largely because of a higher base effect," said SERC's executive director Lee Heng Guie at a media briefing on its quarterly economic tracker report today.

Lee added that SERC expects GDP growth for the third and fourth quarters of 2017 to register at 5.5% and 5.3% respectively.

"Malaysia's 1H17 growth came in well above expectations but now we will see a slight normalisation [moving into the 2H17], and we project GDP growth of 5.1% for 1H18," Lee added.

SERC's overall GDP growth target for the full year stands at 5.5%, still driven mainly by private consumption and private investment.

Lee further added that the nation's medium-term economic outlook remains positive, registering an average growth of 5.1% per annum (p.a.) between 2016 and 2020, compared with 5.3% p.a. between 2011 and 2015, driven by the services, manufacturing and construction sectors.