KUALA LUMPUR, April 18 ― The Malaysian Institute of Economic Research (MIER) has forecast a real gross domestic product (GDP) growth of between 4.7 per cent and 5.3 per cent next year, up from an estimated 4.5 per cent this year.

In its presentation at the 22nd corporate economic briefing here today, MIER cited a brighter outlook for external demand, owing to improvement in commodity prices.

"US, China, Japan and [Europe] grow faster than expected due to fiscal stimulus and accommodative monetary, plus gradual monetary normalisation in US.

"Commodity exporting economies are expected to grow faster as commodity prices improve,” the report stated.

MIER said that Putrajaya was also expected to continue spending money on capacity building.

"Private investment is expected to gain momentum as import of capital goods surged, and improved expectations on BCI (business conditions) in the first quarter of 2017,” the report further stated.

Expounding on Malaysia's 2016 economic performance, MIER said that the real GDP for last year grew by 4.2 per cent, largely driven by domestic demand that surged by 4.4 per cent.

It said that private investment and private consumption both grew at a steady pace of 4.4 per cent and 6.1 per cent.