Malaysia's economy grows 5.3% y/y in Q3
Writes through with details
KUALA LUMPUR, Nov 15 (Reuters) -Malaysia's economy grew 5.3% in the third quarter from a year earlier, slowing from an 18-month high in the previous quarter, the government and central bank said on Friday.
Economists surveyed by Reuters had forecast annual gross domestic product growth of 5.3% in the July-to-September period, down from 5.9% in the previous quarter. The poll forecast matched the government's advance estimate released last month.
Third quarter growth was driven by strength in investment and exports,Bank Negara Malaysia (BNM) said.
"Growth of the Malaysian economy will be driven by robust expansion in investment activity, continued improvement in exports, and resilient household spending" BNM Governor Abdul Rasheed Ghaffour said in a statement.
Headline and core inflation have averaged 1.8%year-to-date, and were expected to stay manageable going into 2025, BNM said.
However, the inflation outlook remained subject to the impact of government policies, global commodity prices and financial market developments.
The government plans to cut blanket subsidies for a widely used transport fuel in the middle of 2025, having done so for diesel, electricity, and chicken this year.
Last month, the government raised its 2024 economic growth forecast to a range of 4.8% to 5.3%, from 4% to 5% previously.
The central bank said the ringgit's MYR= strength in the third quarter was partly due to the U.S. Federal Reserve's shift to an easing cycle, and said Malaysia's economic outlook and reforms would support the currency over the medium term.
The ringgit has recovered from a 26 year-low in February to be about 2% stronger against the dollar this year.
Earlier this month, the central bank held its key interest rate MYINTR=ECI unchanged at 3.00%, reflecting its favourable outlook for growth and inflation.
Reporting by Danial Azhar; Editing by John Mair
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
