Malaysian economy up 5.8% in Q2, fastest growth in more than two years

KUALA LUMPUR: The Malaysian economy grew 5.8% in the second quarter (Q2) of 2017, mainly driven by private sector spending.
Speaking at a media briefing here today, Bank Negara Malaysia governor Datuk Muhammad Ibrahim said the growth in Q2 was the fastest growth since the first quarter of 2015.
He expects the full-year gross domestic product (GDP) to grow above 4.8% in 2017, supported by a more entrenched global economy and positive spillovers to the domestic economy. Q1 growth was 5.6%.
Domestic demand grew by 5.7% in Q2, underpinned by continued expansion in both private sector expenditure and public sector spending. Private consumption saw a growth of 7.1% on the back of the improvement in private sector wages amid continued strength in employment growth. During the quarter, consumer sentiments continued to improve, providing further impetus to household spending.
Private investments expanded by 7.4% in Q2, mainly in the services and manufacturing sectors. In services, investment was supported mainly by expansions in the utilities, healthcare and food & beverage and accommodation sub-sectors.
On the external front, growth was further supported by the robust expansion in real exports of goods and services (9.6%) following strong demand for manufactured and commodity products. Real imports moderated slightly to 10.7% following more moderate expansion in investment.
Headline inflation moderated to 4% in Q2 due mainly to lower transport inflation.
Meanwhile, Malaysia’s external debt amounted to RM877.5 billion, or 66.9% of GDP as at end-June 2017.