November 17, KUALA LUMPUR – Malaysia’s economy grew at a faster pace of 6.2% in the third quarter (Q3) of 2017 compared to 4.3% in the same quarter last year, driven by domestic demand, particularly private sector spending.
From the supply side, the improvement was broadly-based across all sectors, according to Bank Negara Malaysia (BNM) in a statement.
Malaysia had registered a gross domestic product (GDP) growth of 5.8% in Q2, 5.6% in Q1 and given the continued strong performance in Q3, it said, the economy was on course to register close to the upper range of the official projection of 5.2% – 5.7% in 2017, supported by domestic demand.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.8% (2Q 2017: 1.3%), the statement added.
Headline inflation moderated to 3.8% due mainly to lower transport inflation and is expected to average at the upper end of the forecast range of 3% to 4% in 2017 as a whole.
The central bank pointed out that overall volatility in the domestic financial markets remained low amid improved domestic sentiments.
Asset quality and profitability of domestic financial institutions remained healthy and so do businesses and households which continued to demonstrate sound debt servicing capacity.
Liquidity was sufficient to support financial intermediation and meet real economic activity needs with eligible borrowers having continued access to financing.
On the external front, exports will continue to benefit from the favourable global demand conditions.