Malaysia surprises with Q4 2016 GDP growth

KUALA LUMPUR - Malaysia’s better-than-expected economic performance  of 4.5% GDP in the fourth quarter of 2016 was largely due to stronger private consumption,” says ANZ Bank. “We had envisaged weaker consumer sentiment to constrain consumption,” it says.

“The improvement in the current account surplus – owing  to better terms of trade – has helped mitigate pressure on the overall balance of payment accounts.
“Scope for further easing is diminished by higher inflation and weaker domestic currency, though at the same time there is also limited pressure to lift rates given the imposition of export earnings repatriation to boost external reserves, which have lent support to the MYR.” 222.live.anz.com (ATI).