Malaysia expands 5.8%
kuala lumpur — Malaysia’s economy grew faster than economists forecast in the second quarter, fuelled by stronger consumer spending and a pick-up in manufacturing.
Gross domestic product rose 5.8 per cent from a year earlier, after climbing 5.6 per cent in the first quarter, Bank Negara Malaysia said.
Malaysia’s economy is gaining momentum as it grows at the fastest pace in more than two years. The global trade recovery has spurred exports, with Malaysia outperforming its peers in the region as earlier weakness in the currency helped to keep its manufacturing industry competitive. The World Bank raised the nation’s growth forecast in June by the most in East Asia, projecting 4.9 per cent expansion this year.
Central bank Governor Muhammad Ibrahim told reporters in Kuala Lumpur that growth will probably exceed the official forecast of 4.8 per cent this year. The bank last month held its benchmark interest rate at 3 per cent as inflation pressures eased and growth prospects strengthened.
Speaking in general terms, Muhammad said: “When economic growth is entrenched, and if inflation is essentially benign, it gives Bank Negara a bit more flexibility in terms of policy.”
“But as far as we are concerned, we will look at the data objectively,” he said. “Our next meeting will be in September, early September, so we will look at it and see where we should move forward.” — Bloomberg