Published: Friday June 22, 2012 MYT 8:21:00 AM
RHB Research sees GDP growing 4.5% in 2012
KUALA LUMPUR: RHB Research Institute expects Malaysia's real GDP to improve gradually and expand at a slightly faster pace of 4.7% on-year in the second half of 2012, compared with 4.4% in the first half.
“For the full-year, real GDP growth, however, is envisaged to moderate to 4.5% in 2012, from 5.1% in 2011. Further out, we expect the economy to bounce back and expand at a faster pace of around 5.0% in 2013,” it said in its economic outlook on Friday.
RHB Research said that barring a break-up of the Eurozone, it expects prospects of the global economy will gradually improve towards the end of the year once concern over the euro-debt crisis subsides. What is critical is the US economy, which has weathered the euro-debt crisis relatively well.
In addition, policies have begun to be relaxed in other parts of the world that will likely help sustaining their economic growth.
“This will augur well for Malaysia's exports, particularly the electrical & electronic (E&E) exports.
"On the domestic front, fiscal spending that has buoyed public and private sector consumption is likely to tapper off in H2 2012 but growth will likely be cushioned by the implementation of the on going entry point projects (EPPs) under the Economic Transformation Programme (ETP),” it said.
RHB Research said the implementation of the Public Private Partnership (PPP) projects worth some RM50bil established so far this year and the RM65bil secured in 2011 would also help.