Malaysia's 2Q Economic Growth at 5.9%, Faster than Expected

Malaysia’s economic growth accelerated faster than expected in the second quarter of 2024 (2Q2024), thanks to stronger household spending, business investments and exports.

Gross domestic product (GDP) grew 5.9% year-on-year in the April-June quarter, Bank Negara Malaysia (BNM) announced on Friday. The reading is higher than the median estimate of 5.8% growth in a Bloomberg survey, as well as the official flash estimate of 5.8% expansion.

On a seasonally adjusted basis, GDP rose 2.9% quarter-on-quarter.

“Growth in the second half of 2024 will be driven by domestic spending, with continued strong support from external demand,” said BNM in a statement. 

On the demand side, private consumption rose 6%, while private investment climbed 12%, data showed. Public consumption gained 3.6%, while public investment was 9.1% higher. Net exports were up 3.4%. 

On the supply side, the services sector — which accounts for more than half of Malaysia’s economic output — expanded 5.9%, and manufacturing activity advanced 4.7%. Mining production edged up 2.7%, while the construction sector was 17.3% higher.