Illustrative photo (Photo: New Straits Times)
  
Kuala Lumpur (VNA) – Malaysia’ economy is forecasted to grow at 4.5 percent in 2017 due to strong private consumption, the International Monetary Fund (IMF) said on December 15.

The IMF also appreciated policies on economic management of the Malaysian government because the country has performed well despite “significant headwinds” stemming from structurally weak growth at developed and emerging markets.

The Malaysian economy growth is expected to stand at 4.2 percent and the medium-term growth is seen at 4.5-5 percent.

However, the country might continue to suffer from weak commodity prices and slow private investment, according to the Washington-based organisation.

Additionally, the poor performance of Malaysian’s ringgit that has lost 7 percent against the dollar the recent weeks has posed challenges to the Southeast Asian country’s economy.

The Malaysia’s current monetary policy is appropriate in the context of moderate growth, low inflation and external uncertainties, said the IFM.-VNA