Economc growth to moderate to 5.7 per cent in Q3: Alliance Research

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KUALA LUMPUR, Nov 8 – Alliance Research expects Malaysia’s economic growth to moderate to around 5.7 per cent for the third quarter this year as external demand faces headwinds.

In a research note, its chief economist Manokaran Mottain said geopolitical tensions and slower growth in advanced economies would weigh on the country’s exports, although the research house has maintained its full-year gross domestic product growth forecast at 5.8 per cent.

Manokaran said the overall September trade performance was in line with signs of the domestic economy moderating in the second half of 2014.

For the month under review, export growth increased marginally to 2.0 per cent year-on-year while import growth weakened substantially to 1.1 per cent, with the trade surplus widening to RM9.3 billion, up from RM3.9 billion in August.

“Although the September trade surplus has widened, it is largely attributed to the weakened import growth, not stronger export demand,” he added.