KUALA LUMPUR, Oct. 27 (Xinhua) -- Malaysia's 2018 real gross domestic product (GDP) is expected to expand between 5 percent and 5.5 percent, underpinned by resilient domestic and external demand, according to an economic report released by Malaysian Prime Minister Najib Razak on Friday.
Najib, who is also the finance minister, was tabling the 2018 budget on behalf of the ministry at the parliament.
As for 2017, the Malaysian economy is expected to grow between 5.2-5.7 percent, after recording a sterling growth of 5.7 percent in the first half on strong domestic demand and export.
For the year of 2018, private sector expenditure continues to be the primary driver of growth with private investment and consumption growing 8.9 percent and 6.8 percent respectively, according to the report.
Public sector, however, is projected to decline, in line with lower capital outlays by public corporations.
Meanwhile, Malaysia's external position is forecast to remain favorable, supported by global growth and trade.
However, gross exports growth rate for 2018 may slow to 3.4 percent, from its projected growth rate of 16.6 percent in 2017.
The fiscal deficit will further decline to 2.8 percent of the country's GDP in 2018, from 3 percent in 2017. Accordingly, the federal government debt remains sustainable within the prudent limit of 55 percent of GDP.
According to Najib, his government will continue to promote new growth areas such as physical and virtual connectivity across the nation, to achieve an advanced and high-income nation status by 2020.
He added that Malaysia will further diversify its export markets aside from China, India, the Middle East, Europe and the United States.
Malaysia will also continue its transformation path via the National Transformation 2050 in making the country among the top 20 countries in the world in terms of economic development, he said.
