Malaysia Economic Growth Decelerates In Q2

(RTTNews) - Malaysia's economic growth decelerated in the second quarter as the expansion in domestic demand was partially offset by weak exports, official data showed on Friday.

Gross domestic product registered an annual growth of 2.9 percent in the second quarter after rising 5.6 percent in the previous quarter, the Bank Negara Malaysia said Friday.

On a quarterly basis, GDP growth improved to 1.5 percent from 0.9 percent.

On the demand side, the growth was attributed by private final consumption expenditure and gross fixed capital formation.

The growth in final consumption expenditure moderated to 4.2 percent from 4.5 percent in the previous quarter. Private final consumption expenditure moved up 4.3 percent and government spending gained 3.8 percent.

Gross fixed capital formation was up 5.5 percent. On foreign trade, data showed that exports declined 9.4 percent and imports fell 9.7 percent in the second quarter.

The central bank forecast the economy to expand close to the lower end of the 4.0 percent to 5.0 percent range in 2023.

BNM Governor Datuk Abdul Rasheed Ghaffour said, "Risks to Malaysia's growth outlook is subject to downside risk stemming primarily from weaker-than-expected global growth."

"There are, however, upside risk factors such as stronger-than-expected tourism activity and faster implementation of projects," the banker added.

Capital Economics' economist Shivaan Tandon said economic growth is expected to ease in the second half of the year as external demand weakens and elevated interest rates curtail domestic demand.

Another official data showed that the current account surplus advanced to MYR 9.1 billion in the second quarter from MYR 4.3 billion a quarter ago.