KUALA LUMPUR: Malaysia’s economy expanded at a faster pace in the final quarter of 2018, ending a year of weakening momentum as resilient exports helped to shore up growth amid a slowdown in global demand from the US-China trade war.
Solid GDP growth provides a welcome reprieve for Prime Minister Mahathir Mohamad’s administration, which has faced simmering discontent over rising living costs less than a year after romping to a shock general election victory in May.The central bank said it expects the economy to remain on a steady growth path moving forward, supported by steady domestic demand and improving external appetite for Malaysia’s exports.”Malaysia will continue to experience quality growth in external demand in 2019,” Bank Negara Malaysia (BNM) Governor Nur Shamsiah Mohd Yunus told a news conference.
South-east Asia’s third-largest economy expanded 4.7 per cent in the fourth quarter from a year earlier, up from 4.4 per cent in the third quarter. The outcome was in line with the median estimate of a Reuters poll but was better than some economists had expected.
Gains from improved exports, however, are likely not enough to propel a sustained rebound of Malaysia’s economy, with investment and private consumption growth slowing in the October-December period compared to the past quarter, Capital Economics said. (Reuters)