Malaysia’s economy grew at its fastest pace in two years during the first quarter, the central bank said yesterday, boosted by stronger domestic demand and a pick-up in exports.
Southeast Asia’s third-biggest economy expanded 5.6% on-year in January-March period, compared with 4.1% in the same period last year and 4.5% in October-December.
The result – much better than the 4.8% forecast in a survey by Bloomberg News – marks the third consecutive quarter of improving growth and is the fastest since the start of 2015.
“It’s a lot stronger than expected and it was partly due to a rebound in exports and commodity prices,” said Song Seng Wun, an economist at CIMB Private Banking.
Bank Negara said growth would be sustained this year as the global economy showed signs of improvement, while domestic demand remained healthy.
“The economy is on track to register higher growth in 2017,” Bank Negara said via a statement.
“Domestic demand is projected to continue to expand.
Exports are expected to benefit from the improvement in global growth.”
The figures come after export-reliant Malaysia recovers from years of falling oil prices and weak overseas demand.
The economy is forecast to grow 4.3%-4.8% this year but Bank Negara said in March that rising protectionism remains a risk. Growth hit 4.2% last year, slowing from 5% in 2015 and 6% in 2014.
Malaysia’s central bank governor Muhammad Ibrahim shows a copy of a report showing the Q1 GDP growth results at the Bank Negara office in Kuala Lumpur.
