KUALA LUMPUR (Nov 20): Hong Leong Investment Bank Bhd has upgraded its Malaysia 2017 full-year gross domestic product (GDP) growth forecast to 5.8% from a year earlier, after the nation's third quarter (3Q17) GDP expansion at 6.2% beat market forecast.

On Friday, Bank Negara Malaysia said the country's 3Q17 GDP grew 6.2%, driven by domestic demand. In a statement, Bank Negara said on the supply side, all major sectors of the economy had expanded.

Today, Hong Leong wrote in a note: "Real GDP growth gained stronger momentum in 3Q 2017 to record a reading of +6.2% yoy (2Q: +5.8% yoy). This was higher than our revised forecast and market estimate of +5.7%." 

"The acceleration was due to strengthening in both domestic and external sectors. Due to the better-than-expected 3Q17 GDP, we upgrade our full year 2017 GDP (growth) forecast to +5.8% yoy (previous: +5.6% yoy; 2016: +4.2%)," Hong Leong said.

AmBank (M) Bhd said the country's 3Q17 GDP growth at 6.2% beat AmBank's GDP expansion estimate of 5.9% and consensus forecast. Ambank said investment, consumption and strong exports supported the nation's 3Q17 GDP growth.

"Taking into account the first three quarters’ growth, we project the full-year GDP to expand at 5.9%, which is in line with our best case scenario. For 2018, we project the GDP (growth) at 5.5%, underpinned by investment, major infrastructure projects and exports," AmBank wrote in a note today.