KUALA LUMPUR (Oct 4): The World Bank has revised its Malaysia's 2017 economic on-year growth forecast upward to 5.2% from the previously estimated 4.9% expansion on favourable leading indicators in near-term private sector activity and confidence.

World Bank said the outlook for the year remains positive as the economy, as measured by gross domestic product (GDP), continues to experience broad-based growth across a range of diversified sectors.

"Domestic demand is expected to remain the primary anchor of growth, underpinned by robust growth in private sector expenditure," World Bank said in its semi-annual review of the region's developing economies. World Bank announced its semi-annual review at a press conference here today.

According to Bank Negara Malaysia, the country's GDP grew 5.8% in the second quarter of 2017 (2Q17) from a year earlier while 1H17 GDP expanded 5.7% from a year earlier. In 2016, the nation's GDP rose 4.2% from a year earlier, according to Bank Negara.

Today, World Bank said improvement in Malaysia's export performance is expected to continue in 2H17 in tandem with global demand expansion.

World Bank said the Malaysian economy is expected to sustain its current growth momentum into 2018 and 2019 albeit at a more moderate pace amid lower capital expenditure growth expectation.