Malaysia's Economy Grows 3.3% in Q3, Beats Forecast

November 17, 2023, 11.25 AM | Source: Reuters

ILUSTRASI. Malaysia's economy grew 3.3% in the third quarter from a year earlier ANTARA FOTO/Rafiuddin Abdul Rahman/wsj.

MACROECONOMICS - KUALA LUMPUR. Malaysia's economy grew 3.3% in the third quarter from a year earlier, above expectations and recovering from two-year lows in the previous quarter, as strong private consumption offset weak exports, the government and central bank said on Friday.

"Growth was supported by expansion in domestic spending, improvement in labour market conditions, rising tourism and consumption. Meanwhile, weaker external demand and lower mining production has weighed on growth," said central bank Governor Abdul Rasheed Ghaffour.

"Malaysia's economic fundamentals remain strong and supportive of growth," he said, adding that factors driving growth included better employment and income prospects which can strengthen domestic demand, the realisation of multi-year projects, improvement in the global tech cycle, and continued tourist arrivals.

Economists surveyed by Reuters had forecast annual gross domestic product (GDP) growth would come in at 3.0% in the July to September period, slightly faster than the 2.9% expansion in the second quarter, which was near a two-year low.

The Southeast Asian economy has faced sharply slower growth this year, as its exports cool due to weaker global demand.

Malaysia's government last month forecast economic growth of 4% for this year, down from a 22-year high of 8.7% in 2022. It estimates economic expansion of between 4% to 5% in 2024.