KUALA LUMPUR: The Malaysian economy, as measured by gross domestic product (GDP), is forecasted to grow between 4.3% and 4.8% in 2017 from a year earlier, on domestic demand growth and as exports improve.

According to Bank Negara Malaysia’s (BNM) 2016 Annual Report, domestic demand would continue to be the main driver of the nation’s economic growth, underpinned by private sector activity.

BNM said the country’s exports and imports were expected to strengthen on projected improvement in global economic growth, higher commodity prices and sustained domestic demand.

“The gradual improvement in global growth, recovery in global commodity prices and the continued growth of domestic demand are expected to collectively support Malaysia’s growth performance.

The Malaysian economy is projected to register a sustained growth of between 4.3% and 4.8% in 2017.

“Global economic activity is projected to improve in 2017, underpinned by an expansion in domestic demand in the advanced and emerging market economies, boosted in part by expansionary fiscal policies in selected major economies. These pro-growth policies would spur global demand and provide impetus to global trade,” the central bank said.

On Malaysia’s supply side, all major economic sectors are expected to register growth. BNM said the services and manufacturing industries would be the key contributors to GDP growth.

The agriculture sector is expected to rebound as yields recover from the El Niño weather phenomenon.

In 2015, the country’s GDP grew 5%.