Malaysia's GDP in the second quarter of 2024 grew by 5.9% year-on-year, the strongest growth rate since the end of 2022, and the full year growth is expected to be close to 5%.
Datuk Abdullasim, Governor of Bank Negara Malaysia, pointed out at a press conference today that the second quarter economic growth accelerated, thanks to a good labor market and increased policy support, which led to an increase in household spending and improved exports.
With the strengthening of growth momentum, Bank Negara Malaysia still maintains its original forecast of 4% to 5% annual growth, but Abdullasim said that the final growth rate is expected to be close to 5%.
Under the support of stable domestic demand, strong investment activity, and improved export performance, we believe that Malaysia's GDP growth rate this year will fall in the upper end of the 4% to 5% range.
He added that various indicators show that the country's economic growth prospects can continue into the second half of the year, such as further recovery of global orders driving export performance, issuance of more projects, and improved business confidence.
As for whether to consider adjusting the growth forecast, Abdullah said it depends on the announcement of the latest fiscal budget.
In any case, domestic demand remains cautious about potential downward risks to growth, including lower-than-expected external demand, escalated geopolitical conflicts, and lower-than-expected production of commodities in our country.
In the second quarter, private consumption increased by 6% year-on-year, higher than the 4.7% in the first quarter; private investment also increased by 12% year-on-year, compared to a growth rate of only 9.2% in the first quarter.
Net exports turned from an increase to a decline in the second quarter, from the first...