Government Consumption in Malaysia
The economy of Malaysia recorded an average growth rate of 4.1% in government consumption in the decade to 2022. In 2022, government consumption growth was 4.5%.
Malaysia Government Consumption Chart
Note: This chart displays Government Consumption (ann. var. %) for Malaysia from 2014 to 2023.
Source: Macrobond.
Malaysia Government Consumption Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 1.5 | 4.1 | 5.8 | 5.1 | 3.3 |
GDP growth records fastest upturn in a year in Q1
Year-on-year GDP growth picked up to 4.2% in the first quarter, up from 2.9% in the fourth quarter of last year. Q1's reading marked the best result in a year, exceeding both the preliminary estimate of 3.9% and market expectations. The upturn reflected a broad-based improvement in activity. On a seasonally adjusted quarter-on-quarter basis, economic activity rebounded, expanding 1.4% in Q1 and contrasting the previous period's 1.0% decrease.
Looking at the details of the release, private consumption growth picked up to 4.7% year on year in Q1 compared to a 4.2% expansion in Q4. Government consumption growth hit an 11-quarter high of 7.3% in the first quarter, up from the fourth quarter's 5.8%. Meanwhile, fixed investment growth accelerated to 9.6% in Q1 from the 6.4% expansion in the previous quarter. Exports of goods and services bounced back, growing 5.2% year on year in the first quarter, which marked the best reading since Q4 2022 (Q4 2023: -7.9% yoy). Meanwhile, imports of goods and services bounced back, growing 8.0% in Q1 (Q4 2023: -2.6% yoy).
EIU analysts commented on the outlook: “We maintain our projection of 4.4% annual real GDP growth in 2024. Key drivers such as consumer spending, investment and export activity are poised to remain supported in the second half of the year. Furthermore, relatively accommodative monetary policy and ongoing fiscal stimulus measures are likely to provide additional impetus.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Malaysian government consumption projections for the next ten years from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Malaysian government consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Malaysian government consumption projections.
Want to get access to the full dataset of Malaysian government consumption forecasts? Send an email to info@focus-economics.com.
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