Highlight Malaysia 4Q GDP grows 5.1% y-o-y, above expectations

by **Cals** Thu 13 Feb 2014, 01:40

Highlight Malaysia 4Q GDP grows 5.1% y-o-y, above expectations

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 12 February 2014 18:15

KUALA LUMPUR (Feb 12): The Malaysian economy expanded 5.1% year-on-year (y-o-y) in the fourth quarter of 2013, supported by private sector demand and improvement in exports, according to Bank Negara Malaysia today.

For the full-year, the Malaysian economy grew 4.7% after expanding 5.6% in 2012.

The 4Q growth figure was higher than expected. The forecast in a Reuters poll put GDP growth in 4Q at 4.8%. The forecasts ranged from 4.0% to 5.3%.

The full-year growth figure also surpassed expectations. A Reuters poll forecast put it at 4.6% growth in 2013. The forecasts ranged from 5.0% to 5.5%.

In a statement, BNM said major economic sectors grew further, supported by both domestic and trade activities.

During the fourth quarter, the services sector rose 6.4% y-o-y, manufacturing climbed 5.1% y-o-y but mining came in 1.5% lower y-o-y. The agriculture and construction segments expanded 0.2% y-o-y and 9.7% y-o-y respectively.

“Private consumption growth remained high in the fourth quarter,” said BNM.

“Household spending continued to be supported by stable employment conditions and sustained wage growth, especially in the domestic-oriented sectors.”

The central bank also said: “Growth in public consumption moderated to 5.1% in 4Q from 7.8% in 3Q, reflecting lower government spending on emoluments.”

During 4Q, private investment rose 16.5% y-o-y, but public investment fell 2.7% y-o-y.

In quarterly terms, 4Q GDP rose 2.1%.

Going forward, BNM said domestic demand would remain supportive of growth for the Malaysian economy.

“While domestic demand is expected to moderate following the ongoing fiscal consolidation, the external sector is expected to benefit from the improving global conditions,” it said.