Malaysia Economy Logs Slower Growth
(RTTNews) - Malaysia's economy logged a softer growth in the fourth quarter as expansions in manufacturing and construction weakened but the overall growth for 2024 came within the government forecast.
Gross domestic product climbed 4.8 percent from a year ago in the fourth quarter, advance estimates from the Department of Statistics showed on Friday. But this was weaker than the 5.3 percent expansion seen in the third quarter.
At the end of the year, growth was largely driven by the services sector. Growth in services improved to 5.3 percent from 5.2 percent. Construction output registered a robust growth of 19.6 percent but slower than the 19.9 percent rise in the prior quarter.
Likewise, growth in manufacturing moderated to 4.3 percent from 5.6 percent. At the same time, mining and quarrying contracted 1.4 percent and agriculture shrank 0.6 percent.
In 2024, GDP expanded 5.1 percent compared to 3.6 percent in the preceding year. The growth remained within the government's forecast of 4.8 -5.3 percent. The statistical office releases the preliminary GDP data on February 14.
Capital Economics' economist Gareth Leather said tighter fiscal policy will hinder growth. Also, the expected decline in global commodity prices as well as weak global demand will weigh on economic activity, he noted.
The economist said GDP growth is expected to slow to 4.8 percent this year. With inflation set to rise on the back of subsidy cuts, the central bank will hold key interest rate unchanged for the foreseeable future, Leather added.
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