Malaysia's Economic Growth in Q3

KUALA LUMPUR (Reuters) – Malaysia's economy likely grew 5.3% in the third quarter from a year earlier, slower than the previous three-month period, according to official advance estimates released on Monday.

In the second quarter, gross domestic product had expanded by an annual 5.9%, marking its fastest rate in 18 months, driven by higher household spending, exports, and investment.

Recently, the government raised its economic growth forecast for 2024 to 4.8% to 5.3%, up from the previous estimate of 4% to 5%.

The third-quarter growth was mainly fueled by the services sector, which increased by 5.1% year-on-year, along with positive contributions from the manufacturing, construction, and agriculture sectors, as reported by the Statistics Department.

However, the mining and quarrying sector experienced a decline of 3.4% year-on-year, attributed to lower performance in the natural gas and crude oil and condensate sub-sectors.

Exports saw an increase of 7.8% in the third quarter compared to the same period last year, while imports surged by 20.8%.

Chief Statistician Mohd Uzir Mahidin noted that a stable labor market, moderate inflationary pressure, supportive fiscal and monetary policies, and a recovering tourism sector are expected to bolster the economy.

He added, "Additionally, positive trends in consumer spending and rising investment are set to spur economic growth this quarter."

The final third-quarter GDP figures are anticipated to be released on Nov. 15.