KUALA LUMPUR (March 23): The Malaysian economy as measured by gross domestic product (GDP), is forecasted to grow between 4.3% and 4.8% in 2017 from a year earlier, on domestic demand growth and as exports improve.   

According to Bank Negara Malaysia’s 2016 Annual Report, domestic demand would continue to be the main driver of the nation's economic growth, underpinned by private sector activity.  

Bank Negara said the country's exports and imports were expected to strengthen on projected improvement in global economic growth, higher commodity prices and sustained domestic demand.

"With the gradual improvement in global growth, recovery in global commodity prices and the continued growth of domestic demand are expected to collectively support Malaysia’s growth performance.

The Malaysian economy is projected to register a sustained growth of between 4.3% and 4.8% in 2017.

"Global economic activity is projected to improve in 2017, underpinned by an expansion in domestic demand in the advanced and emerging market economies, boosted in part by expansionary fiscal policies in selected major economies. These pro-growth policies would spur global demand and provide impetus to global trade," Bank Negara said.

On Malaysia's supply side, all major economic sectors are expected to register growth. Bank Negara said the services and manufacturing industries would be the key contributors to GDP growth. 

The agriculture sector is expected to rebound, as yields recover from the El Niño weather phenomenon. 

"Growth in the mining sector is expected to remain steady, as a stronger expansion in natural gas output offsets a moderation in the crude oil sub-sector," Bank Negara said.

Bank Negara's 2017 Malaysia GDP growth forecast at between 4.3% and 4.8% is better than the country's 2016 GDP expansion of 4.2%. In 2015, the country's GDP grew 5%.