Malaysia: GDP growth strong in Q1
May 15, 2015
In the first quarter of 2015, GDP expanded 5.6% over the same period of the previous year. The figure marked a slight acceleration compared to the 5.7% growth tallied in Q4 (previously reported: +5.8%) and overshot the 5.5% rise that the markets had expected. The Department of Statistics indicated that the result was driven by strong demand and fixed capital formation growth. In quarterly terms, seasonally adjusted GDP increased 1.2%, decelerating from Q4’s 1.8%.
On the domestic front, private consumption grew a significant 8.8% in Q1, which was even more robust than the 7.6% increase recorded in Q4 (previously reported: +7.8%), and marked the highest reading in six quarters. The increase in private consumption was driven by solid spending on food and beverages, transportation and communication. Gross fixed investment growth saw a jump from 4.3% in Q4 to 7.9% in the first quarter of 2015.
In the external sector, exports of goods and services declined 0.6% in Q1, contrasting the 1.9% increase in Q4 (previously reported: +1.5%) and marking the slowest pace of growth in seven quarters. Imports grew 1.0% in Q1, which marked a deceleration from the 2.6% increase recorded in the previous quarter. Consequently, the external sector’s net contribution to overall growth fell from Q4’s minus 0.8% to minus 1.1% in Q1.
Author: Robert Hill, Economist