GDP in Malaysia
Malaysia - GDP
Economy accelerates in Q3, supported by private consumption
In the third quarter of 2016, GDP expanded 4.3% over the same period last year. The figure marked an acceleration compared to the 4.0% increase in Q2 and beat market expectations of a 4.0% rise. According to the Department of Statistics Malaysia, strong private consumption growth offset weak fixed investment and government consumption. Q3’s figure confirms private consumption’s emergence as the growth pillar of the economy after the collapse of oil prices limited the government’s ability to spend. A quarter-on-quarter comparison showed that seasonally-adjusted GDP growth picked up from 0.7% in Q2 to 1.5% in Q3.
Domestic demand pushed Q3’s expansion by increasing 4.2% (Q2: +4.9% year-on-year). Private consumption growth remained unchanged at Q2’s 6.4% in Q3—the fastest rate since Q2 2015—supported by sustained wage and employment growth, as well as the increase in the minimum wage announced on 1 July. Growth in consumption largely reflected higher spending on food and beverages, transportation and housing. Conversely, government consumption decelerated markedly in Q3, easing from a 6.5% expansion in Q2 to a 3.1% increase, owing largely to tighter fiscal policy. Fixed investment also lost steam in Q3, growing a mild 2.0% (Q2: +6.1% year-on-year).
In the external sector, exports of goods and services contracted 1.3% in Q3, which contrasted the 1.0% expansion in Q2. Imports also deteriorated, shrinking 2.3% in Q3, which was down from the 2.0% expansion in Q2. Due to the faster decline in imports, the external sector’s net contribution to overall growth swung from minus 0.6% in Q2 to plus 0.5% in Q3.
The government projects GDP growth of 4.0%–4.5% for 2016. FocusEconomics Consensus Forecast panelists expect GDP to grow 4.1% in 2016, which is unchanged from last month’s projection. For 2017, the panel expects economic growth of 4.3%, which is down 0.1 percentage points from last month’s forecast.
Malaysia - GDP Data
|Economic Growth (GDP, annual variation in %)||5.3||5.5||4.7||6.0||5.0|
5 years of economic forecasts for more than 30 economic indicators.
Malaysia GDP Chart
Source: Department of Statistics Malaysia and FocusEconomics calculations.
|Bond Yield||4.24||-0.82 %||Jan 20|
|Exchange Rate||4.45||-0.08 %||Jan 20|
|Stock Market||1,665||-0.10 %||Jan 20|
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December 30, 2016
In November, consumer prices jumped 1.04% from the previous month, which followed the 0.35% increase registered in October, according to the Department of Statistics Malaysia.
December 9, 2016
Industrial production increased 4.2% in October from the same month last year.
December 7, 2016
Malaysian exports in USD terms dropped a massive 10.4% annually in October, which contrasted September’s 1.0% expansion and marked a five-month low.
November 24, 2016
In October, consumer prices increased 0.4% over the previous month, which contrasted the 0.3% decrease registered in September, according to the Department of Statistics Malaysia.
November 23, 2016
Bank Negara Malaysia (BNM) decided to keep the Overnight Policy Rate unchanged at 3.00% at its 23 November monetary policy meeting, as widely expected by market analysts.