The economy lost momentum in the first quarter of 2011 expanding a more moderate 4.6% over the same period last year compared to the 4.8% tallied in Q4 2010. In addition, the print undershot market expectations of a 4.9% increase. The deceleration partially reflects an unfavourable base effect, as GDP climbed a buoyant 10.1% in the first quarter of 2010. That said, the deceleration was mostly driven by slower growth in the external sector, as the 8.4% increase in imports (Q4 2010: +3.5% year-on-year) outpaced a rise in exports of 3.7% (Q4 2010: +1.7% yoy). Against this backdrop, the net contribution of the external sector dropped further from minus 1.7 percentage points in the fourth quarter to minus 4.0 percentage points in the first quarter of 2011. On the other hand, domestic demand improved markedly compared with the previous quarter, expanding 10.3% over the same period last year (Q4 2010: +7.2% yoy). Gross fixed investment moderated from an expansion of 10.0% in the fourth quarter to rise 6.5%, while private consumption rose to 6.7% (Q4 2010: +6.4% yoy). Meanwhile, public spending surged 6.1% after recording a virtually flat reading in the previous quarter, which supported total consumption growth (Q4 2010: +4.8% yoy; Q1 2011: +6.6% yoy). At the sector level, the slowdown was widespread as all components moderated compared to the previous quarter. Services slowed from 6.1% to 5.9%, while manufacturing decelerated from 6.2% to 5.4%. The construction sector moderated from a 5.6% expansion to growth of 3.8%.
Economic growth slows in the first quarter
May 18, 2011
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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.