KUALA LUMPUR, Nov 12 (Bernama) -- The country's real gross domestic product (GDP) is expected to grow at a faster pace of 5.8 per cent this year and would likely moderate to 5.3 per cent in 2015.
RHB Bank, in a research note today, said Malaysia's real GDP growth was expected to have slowed to 5.2 per cent year-on-year in the third quarter, after rising to a six-quarter high in the second quarter this year.
"This is attributed to a much weaker growth in the country's exports due to a higher base effect, falling commodity prices and weak regional trade," it said.
The research also found that external demand was dragged down by slower growth in global semiconductor sales amid a moderate and uneven global economic recovery.
The growth in real exports was projected to have slowed to one per cent year-on-year in the third quarter, from 8.8 per cent in the second quarter.
"This was due to persistent weakness in the Eurozone and Chinese economies, while the Japanese economy is also struggling to regain traction," the research said.
Overall, domestic demand is expected to have sustained its growth at 5.7 per cent year-on-year in the third quarter, similar to the second quarter, underpinned by resilient consumer spending and increase in private investment, the research said.
On the external front, it said both Japan and Eurozone were struggling to shrug off their economic doldrums, although the bigger picture still points to a sustained global economic growth in the months ahead, led by the US and the UK.
"This will likely provide growth for the country's exports in the period ahead, albeit at a more moderate pace.
"We expect real exports to pick up pace to 4.5 per cent in 2014 from 0.6 per cent in 2013," the research said.
-- BERNAMA
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