Malaysia: Exports slow in July
September 8, 2011
In July, exports rose 14.4% over the same month last year. The reading came in below the previous month's 17.0% increase, but exceeded market expectations. The July print represented the 20th consecutive month of double-digit growth. According to Statistics Malaysia, the July increase was mostly driven by higher shipments of vegetable oil and fats, crude as well as gas. Moreover, growth in exports benefited from higher shipments to Japan and China. Imports decelerated from a 14.7% expansion in June to a 10.1% increase in July. As a result, the trade surplus widened from USD 2.5 billion in June to USD 3.1 billion in July, which bodes well for an improving net contribution of the external sector to third quarter GDP growth.