Wainwright Marks Management - External Factors Could Affect Malaysian Economic Growth
April 09, 2019 Business News(PRLEAP.COM) Malaysia's economic growth will be moderate this year according to an annual report by Bank Negara Malaysia. Wainwright Marks Management analysts say the economy will likely be supported by domestic expansion and growing demand from the private sector which is traditionally the biggest driver of Malaysian economic growth. Private consumption is expected to expand by 6.6% in 2019.
While all of the country's economic sectors are expected to see positive expansion during the course of 2019, Wainwright Marks Management analysts say several external factors could temper Malaysia's economic growth this year.
The US government shutdown which lasted 35 days, making it the longest in history, had a negative impact on the US economy and indirectly impacted global economic growth during the first quarter of this year.
US monetary policy could also affect the global economy this year and Wainwright Marks Management analysts believe the ongoing trade dispute between the US and China will continue to cause a global economic slowdown.
China's economy has already suffered the effects of the trade war with the US and last year it reported the lowest GDP growth in three decades.
The largest contributors to Malaysia's economy are services and manufacturing. The service sector is expected to grow by 5.7% this year and manufacturing is expected to expand by 4.8%. This should result in moderate but steady GDP expansion for Malaysia's economy this year.