Malaysia: GDP growth rises in Q4, posts robust 6.0% in the full year 2014
February 12, 2015
In the fourth quarter of 2014, GDP expanded 5.8% over the same period of the previous year. The figure marked a slight acceleration compared to the 5.6% tallied in Q3 and overshot the 5.0% rise that the markets had expected. The result shows that domestic demand made up for a weak external sector.
On the domestic front, private consumption grew a significant 7.8% in Q4, which was a faster increase than the already strong 6.7% recorded in Q3. Gross fixed investment skyrocketed in the final quarter of 2014, jumping from a 2.1% rise in Q3 to a 9.0% expansion in Q4. Meanwhile, public spending rose 2.8% in Q4 (Q3: +5.3% year-on-year).
In the external sector, exports of goods and services grew only 1.5% in Q4, decelerating from the 2.8% increase tallied in the previous quarter and marking the slowest pace of growth since Q2 2013. Imports grew 2.6% in Q4, which was slightly up from the 2.2% expansion registered in Q3. Consequently, the external sector’s net contribution to overall growth swung from plus 0.7 percentage points in Q3 to minus 0.8 percentage points in Q4.
In the full year 2014, GDP expanded a robust 6.0%, accelerating from the 4.7% tallied in 2013 and marking the fastest pace of growth since 2010.
Author: Cecilia Simkievich, Economist