Malaysia: Economic growth ticks up in Q4, but decelerates in FY 2013
February 12, 2014
In the fourth quarter, GDP expanded 5.1% over the same period of the previous year. The figure came in just above the 5.0% rise tallied in the third quarter and beat market expectations of 4.8% growth in the economy. For the full year 2013, GDP expanded 4.7%, which was below the 5.6% registered in 2012.
On the domestic front, private consumption grew a significant 7.3% in Q4, although growth was slower than in the previous quarter (Q3: +8.2% year-on-year). Public spending moderated from a 7.8% expansion in Q3 to a 5.2% increase in Q4. Gross fixed capital formation decelerated from an 8.6% expansion in Q3 to a 5.8% rise in Q4. However, a strong restocking of inventories boosted overall domestic demand.
In the external sector, exports of goods and services reached 2.9% growth in Q4, marking an acceleration over the 1.7% increase in Q3. Imports posted an even greater acceleration, increasing 4.4% in Q4, which was above the 1.8% rise recorded in Q3. Consequently, the external sector's net contribution to overall growth decreased from a zero reading in Q3 to minus 1.0 percentage points in Q4.
The government expects economic growth to range between 5.0% and 5.5% in 2014. FocusEconomics Consensus Forecast panelists expect GDP to grow 5.1% in 2014, which is down 0.1 percentage points from last month's projection. For 2015, the panel expects economic growth of 5.0%.
Author: Carl Kelly, Economist