Malaysia: Staff Report for the 2014 Article IV Consultation
IMF Staff Country Reports, March 3, 2015
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- Malaysia: Staff Report for the 2014 Article IV Consultation
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Bibliographic details
- Published: March 3, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498392815.002
Economic performance in 2014
- Growth accelerated to 5.9 percent in 2014, supported by robust domestic private demand and a recovery in exports.
- Inflation was contained at 3.1 percent in 2014, despite policy changes that removed fuel subsidies and increased electricity tariffs.
- The economy is described as well-diversified.
Outlook and projections
- Growth is expected to moderate to 4.8 percent in 2015.
- Strong investment momentum is expected to help offset headwinds from continued fiscal consolidation.
Energy prices and sectoral effects
- Lower energy prices helped contain headline inflation.
- Lower energy prices will be a drag on oil and gas production.
- Lower energy prices should provide a boost to the large non-oil sector.
Policy context and themes
- Continued fiscal consolidation is identified as a headwind to growth.
- Investment momentum is highlighted as a key offsetting factor to fiscal consolidation.
- Removal of fuel subsidies and an increase in electricity tariffs were implemented and factored into inflation outcomes.
_ Source: Malaysia: Staff Report for the 2014 Article IV Consultation_