Whereas data released by statistics department shows contraction for August, indicating the economy continues to moderate.
MIDF predicts the economic outlook data conducted by the statistics department will show further improvement in the coming months.
PETALING JAYA: Following the statistics department’s announcement that the economic outlook via the leading index is expected to remain in the negative territory, MIDF Amanah Investment Bank Bhd has reaffirmed its prediction that Malaysia’s gross domestic product will achieve a 4.2% growth rate in 2023.Yesterday, data released by the statistics department showed the contraction of the LI, a tool utilised for predicting economic trends four to six months ahead, narrowed by 0.5% to 109.
MIDF Research said in a note today that it viewed the improvement in the LI as signalling better growth momentum in the coming months, although the continued decline indicated that the momentum would remain moderate. On the coincident index which rose 2.1% year-on-year in August 2023, the research house said the sustained expansion in CI indicated that the current economic growth remained supported mainly by increases in domestic economic activities.
“We believe the LI will show further improvement and the CI will continue to grow in the coming months, as we foresee sequential growth momentum will gradually improve on the back of recovering external trade and sustained expansion in domestic demand,” it said.