Malaysia's gross domestic product (GDP) grew 5.9% year-on-year in the second quarter of 2024, breaking the strongest growth rate since the end of 2022, and full-year growth is expected to be close to 5%.
Bank of Malaysia Governor Dato' Abdullahi pointed out at a press conference today that economic growth accelerated in the next quarter due to good labor market conditions and increased policy support, which led to a rise in household spending and an improvement in domestic exports.
In the face of increased growth momentum, the Bank of China still maintains the original annual growth forecast of 4% to 5%, but Abulacil said that the final growth rate should be close to 5%.
“Supported by steady domestic demand, strong investment activity and improved exports, we believe that Malaysia's GDP growth rate should fall to the high end of the 4% to 5% range this year.”
He added that various indicators show that China's economic growth prospects can continue until the second half of the year, such as a further recovery in global orders to drive export performance, issuing more projects, and improving business confidence.
As to whether it will consider adjusting the growth forecast, Abdullahi said that this is pending the announcement of the latest budget.
In any case, the Bank of China remains wary of potential downside risks to growth, including lower peripheral demand than expected, escalating geopolitical conflicts, and lower than expected commodity production in China.
In the second quarter, private consumption rose 6% year on year, up from 4.7% in the first quarter; private investment also rose 12% year on year, and the growth rate in the first quarter was only 9.2%.
Net exports went up and down in the next quarter, from the beginning...