Economy grew at 4.7% for 2018, says Bank Negara Malaysia

Economy grew at 4.7% for 2018, says Bank Negara Malaysia
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KUALA LUMPUR: The Malaysian economy registered a growth of 4.7% during the final quarter of 2018, bringing the total GDP for the year to 4.7%, according to Bank Negara Malaysia today.

Private sector activity remained the driver for growth, while a rebound in exports of goods and services contributed towards the positive growth of net exports.

BNM governor Shamsiah Mohd Yunus said that major sectors had expanded during the quarter.

“The services sector was supported by continued strength in consumer spending, particularly in the retail segment. Growth in the manufacturing sector remained driven by the electronics and electrical (E&E) and consumer related clusters,” she told a presentation today.

Commodities related sectors continued to recover from production disruptions experienced since the second quarter, with higher growth in the mining and agricultural sectors.

Headline inflation moderated to 0.3% (3Q 2018:0.5%) as the transport inflation turned negative.

The combined outcome of zerorisation of the goods and services tax (GST) and the implementation of the sales and services tax (SST) continued to exert an overall downward impact to headline inflation during the quarter.

Shamsiah said that going forward, the Malaysian economy is expected to tread on a steady growth path.

The sector is expected to remain the main driver of growth amid continued fiscal rationalisation while the external sector is likely to soften with moderating global demand.

She said headline inflation is expected to average moderately higher.

The impact of consumption tax on headline inflation in 2019 will start to lapse towards the end of the year.

Shamsiah also said that the healthy level of the current account surplus at RM10.8 billion, and ample liquidity in the banking sector shows that the economy was not in any recessionary risk.

[Source: “Economy grew at 4.7% for 2018, says Bank Negara Malaysia” published by Free Malaysia Today]

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