Malaysia's export-driven economy moderated at the outset of the year, dragged down by lower external demand, while domestic demand remained resilient. In the first quarter of 2012, GDP grew 4.7% over the same period last year, which undershot the 5.2% expansion recorded in the fourth quarter but came in above market expectations that had GDP increasing 4.6%. Domestic demand remained strong (Q4 2011: +7.5 year-on-year; Q1 2012: +9.0 yoy) as private consumption continued to gain some momentum (Q4: +7.3% yoy; Q1: +7.4% yoy) and gross fixed capital formation soared (Q4: +8.4% yoy; Q1: +16.1% yoy). On the other hand, public spending moderated sharply due to government efforts to contain the rampant fiscal deficit, slowing from 22.9% in the fourth quarter to 5.9% in the first. On the external front, exports of goods and services slowed markedly from a 5.5% increase in the fourth quarter 2011 to a 2.8% rise in the first, while imports of goods and services grew at a slower pace (Q4: +7.8% yoy; Q1: +6.8% yoy). As a result, the external sector's net contribution to overall growth fell from minus 1.3 percentage points in the fourth quarter to minus 3.0 percentage points in the first.
Economy slows on the back of weaker external sector
May 23, 2012
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Note: Annual variation of gross domestic product (GDP) in %.
Source: Department of Statistics Malaysia and FocusEconomics calculations.
Malaysia Economic News
October 12, 2016
Industrial production increased 4.9% in August from the same month last year.
October 7, 2016
Exports in USD terms rose 3.3% annually in August, which was a sharp improvement over July’s 8.9% contraction (previously reported: -8.7% year-on-year).
September 23, 2016
In August, consumer prices rose 0.43% over the previous month, which was slightly up from the 0.26% increase registered in July, according to the Department of Statistics Malaysia.
September 16, 2016
The ringgit has had a tumultuous week as a combination of factors, both domestic and external, have impacted the currency.
September 10, 2016
Industrial production increased 4.1% in July over the same month last year.