Malaysia GDP Expands More Than Estimated

(RTTNews) - Malaysia's economy expanded more than previously estimated in the fourth quarter on household spending and investment, official data showed on Friday.

Gross domestic product expanded 5.0 percent year-on-year in the fourth quarter. This was revised up from the prior estimate of 4.8 percent and follows 5.4 percent growth registered in the third quarter. Private final consumption expenditure and gross fixed capital formation were the main catalysts on the demand side.

Private consumption climbed at a slightly faster pace of 4.9 percent, while the growth in government spending eased to 3.3 percent from 4.9 percent.

At the same time, gross fixed capital formation surged 11.7 percent but slower than the 15.3 percent increase seen a quarter ago. Exports increased 8.5 percent after an 11.8 percent gain. Likewise, the increase in imports slowed to 5.7 percent from 13.5 percent.

On the production side, the services, manufacturing and construction sectors continued to drive overall growth on the supply side. Services grew 6.2 percent and manufacturing advanced 3.2 percent. Construction showed a double-digit growth of 18.3 percent.

By contrast, mining and quarrying and agriculture shrank 2.8 percent and 2.4 percent, respectively.

On a quarterly basis, GDP contracted 1.1 percent, in contrast to the 1.9 percent growth seen in the third quarter, data showed. Overall, the economy grew at 5.1 percent, in line with the flash estimate, and faster than the 3.6 percent expansion seen in 2023. The improvement was driven by the continued expansion in domestic demand and a rebound in exports.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said, "Going forward, while the global environment could be challenging, growth of the Malaysian economy will be driven by robust expansion in investment activity, resilient household spending and expansion in exports supported by Malaysia's strong economic fundamentals."