Malaysia: Economic activity slows in third quarter
November 16, 2012
In the third quarter, GDP expanded 5.2% over the same period last year, which was below the 5.6% rise tallied in the previous period (previously reported: +5.4% year-on-year). That said, the print overshot market expectations that had the economy growing 4.8%. Private consumption expanded 8.5% (Q2: +8.8% yoy), while public spending added only 2.3% over the same quarter last year (Q2: +10.9% yoy). Gross fixed capital formation remained resilient but slowed to a 22.7% rise (Q2: +26.1% yoy). In addition, GDP benefited from a positive shift in inventories. On the external front, exports of goods and services continued to deteriorate, falling from a 2.1% increase in the second quarter to a 3.0% drop in the third. On the other hand, imports rose 4.4% (Q2: +8.1% yoy). As a result, the external sector's net contribution to overall growth deteriorated from minus 5.0 percentage points in the second quarter to minus 6.8 percentage points in the second.