Kuala Lumpur: MIDF Amanah Investment Bank Bhd anticipates that Malaysia's gross domestic product (GDP) growth for the fourth quarter of 2024 will reach 4.8 per cent, mirroring the government's advance estimate.

According to BERNAMA News Agency, MIDF Amanah Investment Bank highlighted potential factors that could boost GDP growth, including a possible turnaround in net exports, increased manufacturing output towards the end of the year, and positive effects from stable inflation. The construction sector is also expected to continue its encouraging progress.

Conversely, the investment bank cautioned that weaker production of primary commodities, such as crude petroleum and palm oil, might impede GDP growth. This concern underpins their belief that the full quarter data will likely remain consistent with the advance estimate.

Looking ahead to 2025, MIDF Amanah maintains its outlook that Malaysia's economic growth will be propelled by rising consumer and business spending, alongside sustained growth in external demand. However, they anticipate the GDP growth rate to normalize at approximately 4.6 per cent, a decline from last year's estimation of 5.1 per cent.

MIDF Amanah also expressed caution regarding several downside risks that could impact Malaysia's trade and growth prospects. These include potential escalations in trade tensions, disruptions to global supply chains, and renewed inflation risks. Domestically, the bank is wary of rising cost pressures that could lead to increasing price pressures, although they expect demand pressures to remain manageable.

The Department of Statistics Malaysia (DOSM) is scheduled to announce Malaysia's 4Q 2024 GDP data tomorrow.