Malaysia’s GDP expands moderately by 4.7 pct in 3Q 2015
KUALA LUMPUR: Malaysia’s gross domestic product (GDP) expanded moderately by 4.7 per cent in the third quarter of 2015, as compared to 4.9 per cent in the second, driven mainly by private sector demand.
Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said the country also saw a moderate pace expansion, with diverging growth momentum across economies.
“The global economy expanded at a moderate pace in the third quarter of 2015. In Asia, growth was supported by continued expansion of domestic demand amid a weak export performance,” she added.
Zeti highlighted this at a media briefing on the third quarter GDP performance here today.
The Malaysian economy is expected to chart a steady growth path in expanding to the region of 4.5-5.5 per cent this year and 4.0-5.0 per cent in 2016.
She added that domestic demand will continue to be the key driver of growth, supported mainly by private sector activities.
“In addition, the flexible exchange rate, deep and more mature financial markets and solid financial institutions will support this trend. It ensures that shocks such as volatile capital flows are well intermediated, thereby minimising spillovers to the real economy,” Zeti said.
In Q3, private consumption expanded at a more moderate rate of 4.1 per cent as compared with 6.4 per cent in Q2, as house-
The global economy expanded at a moderate pace in the third quarter of 2015. In Asia, growth was supported by continued expansion of domestic demand amid a weak export performance.
Tan Sri Dr Zeti Akhtar Aziz, Bank Negara Malaysia Governor
holds continued to adjust to the implementation of the Goods and Services Tax (GST).
Zeti said private investment grew by 5.5 per cent (2Q 2015: 3.9 per cent), due to capital spending in the manufacturing and services sectors.
Growth in public investment was positive at 1.8 per cent in the third quarter from -8 per cent in the previous quarter due to an improvement in spending on fixed assets by both the Federal government and public enterprises.
Meanwhile, public consumption growth moderated to 3.5 per cent (2Q 2015: 6.8 per cent) following the slower growth in both emoluments and supplies and services and services expenditure.
On the supply side, all economic sectors continued to expand during the quarter, led by the construction and manufacturing sectors, Zeti said.
The construction sector growth improved due mainly to a faster expansion in the civil engineering and specialised construction activities sub-sectors.
“Similarly, the manufacturing sector registered higher growth, supported in particular by an improvement in the export-oriented industries.
The services sector registered lower growth due to a moderation in household spending and slower capital market activity,” she added.
The mining and agriculture sectors expanded at a slower pace due to moderation in crude and palm oil production, respectively. — Bernama