Malaysia: GDP accelerates further in Q2
August 15, 2014
In the second quarter, GDP expanded 6.4% over the same period of last year. The figure marked a slight acceleration compared to the 6.2% rise tallied in the first quarter and beat market expectations of 5.7% growth in the economy. The result, which marked the fastest pace of growth since Q4 2012, was driven by robust fixed investment and stronger exports growth.
On the domestic front, private consumption grew a significant 6.5% in Q2, although this was slower than in the previous quarter (Q1: +7.1% year-on-year). Gross fixed capital formation picked up from a 6.3% increase in Q1 to a 7.2% expansion in Q2. Meanwhile, public spending plummeted from an 11.2% increase in Q1 to a 1.3% contraction in Q2.
In the external sector, exports of goods and services reached 8.8% growth in Q2, marking both an acceleration over the 7.9% increase tallied in Q1 and the fastest pace of growth since Q2 2010. Imports grew 3.9% in Q2, which was down from the 7.1% increase tallied in Q1. Consequently, the external sector’s net contribution to overall growth increased from 1.3 percentage points in Q1 to 4.5 percentage points in Q2.
Author: Carl Kelly, Economist