Posted on 09 Apr 2013
The Asian Development Bank forecasts Malaysia's economy to grow 5.3% this year and pick up to expand at 5.5% in 2014.
In its Asian Development Outlook 2013 issued on Tuesday, it said inflation was expected to rise to 2.2% this year and to 3.0% in 2014.
On Asia's economy, ADB said the region's giants were showing different speeds of recovery.
It said China would expand by 8.2% in 2013 and 8.0% in 2014, compared with 7.8% in 2012, as strong domestic demand continues and export performance picks up.
"India has considerable potential, but its future performance relies on resolving contentious structural and policy issues that inhibit investment. Strong consumption will continue to drive India's recovery from 5.0% in fiscal year 2012 to 6.0% in 2013 and further to 6.5% in 2014 if reform can build momentum," it said.
As for Southeast Asia, ADB said robust domestic demand and greater intraregional trade underlie the region's recent resilience.
It said Asean was the only subregion to enjoy faster growth in 2012, rising to 5.5% from 4.7% in 2011. Reform-oriented economies less dependent on exports, like the Philippines and Indonesia, relied on their own domestic demand to compensate for soft demand from the major industrial economies.
"Asean's resilience is expected to extend through the forecast horizon, with its member economies averaging growth of 5.4% in 2013 and 5.7% in 2014," it said.
