MIDF Maintains 2024 GDP Forecast At 5.0 Pct 

KUALA LUMPUR, Oct 21 (Bernama) -- MIDF Research has kept its 2024 gross domestic product (GDP) growth forecast at 5.0 per cent, bolstered by ongoing increases in domestic spending and a recovery in exports.

In a note today, MIDF Amanah Investment Bank Bhd said that based on the advance estimate, Malaysia’s economy expanded by 5.3 per cent year-on-year (y-o-y) for the third quarter (3Q) of 2024, sustaining growth above 5.0 per cent for the second consecutive quarter. 

"The growth was generally in line with our expectations, although the pace of growth was slightly higher than our estimate, as we noticed a slower expansion in the Industrial Production Index (IPI) and anticipate the weaker mining output to drag the 3Q calendar year (CY) 2024 GDP growth, it added.

By sector, MIDF Research said all economic sectors expanded except mining declined by 3.4 per cent y-o-y, which can be attributable to weaker output of crude petroleum and natural gas.

The Department of Statistics Malaysia reported that advance estimates indicate Malaysia's economy grew by 5.3 per cent in 3Q 2024, following a robust 5.9 per cent growth in the preceding quarter.

MIDF Research highlighted that a more robust expansion in domestic spending can be an upside surprise to its GDP forecast, given the positive labour market and the delay in RON95 subsidy rationalisation to mid-2025.

"Nevertheless, we are still cautious of potential downside risks to Malaysia’s growth outlook from weaker final demand from major economies and possible disruptions to global supply chain and international trade from heightened geopolitical and trade tensions," it added. 

MIDF Research is part of MIDF Amanah Investment Bank. 

-- BERNAMA