Malaysia’s economy expanded at a faster-than-expected clip in the second quarter from a year earlier, thanks to resilient consumer demand offsetting weaker exports, official flash estimates showed.
Gross domestic product (GDP) rose 4.5% in April-June when compared to the same quarter last year, the Department of Statistics Malaysia said in a statement on Friday. The rate is higher than the median 4.2% increase predicted in a Bloomberg poll and the first quarter’s 4.4% year-on-year growth.
“Growth momentum was sustained in April and May, with a stronger performance anticipated in June,” the department said.
The services sector, which accounts for more than half of the economic output, accelerated to 5.3% in the second quarter thanks to an earlier public sector wage increase, school holidays and seasonal spending during both Hari Raya Aidilfitri and Hari Raya Aidiladha.
Growth of the manufacturing sector, however, moderated to 3.8%, largely supported by production in electrical, electronic and optical products as well as vegetable and animal oils and fats, and food processing.
The construction sector also slowed, growing at 11% on the back of non-residential buildings and specialised construction activities.
The agriculture sector, however, picked up to 2.0% in the second quarter thanks to palm oil production while the mining and quarrying sector contracted at a steeper rate of 7.4% due to lower production across all sub-sectors.
“Overall, while domestic consumption continued to persist as a strong pillar, the external components of the economy remained challenging, weighed down by surrounding tariff developments and continued global political uncertainties,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
The detailed and comprehensive analysis for second-quarter GDP data will be released on Aug 15.
Source: theedgemalaysia