Malaysia’s economy surpassed market expectations in the second quarter, growing 5.9% from a year earlier, as the central bank and government announced on Friday.
The growth from April to June contrasted with the first quarter’s 4.2% annual growth.
Additionally, it exceeded the 5.8% prediction in a Reuters survey and the government’s advance estimate, which was made public last month.
According to a joint press conference by Bank Negara Malaysia (BNM) and the Statistics Department, stronger household spending, favourable labour market conditions, and an uptick in export and investment activity drove the quarter’s growth.
According to BNM Governor Abdul Rasheed Ghaffour, full-year growth in 2024 is now anticipated to be at the higher end of the central bank’s forecast of 4%–5% growth.
He predicted that household spending will continue to be the main driver of growth for the remainder of the year, with strong investment activities, increased policy support, and ongoing gains in income and employment. Since falling to a 26-year low versus the US dollar in February, the ringgit has strengthened and has gained 3.3% so far this year. According to BNM, this was partly caused by rising expectations of US policy rate cuts, which have lessened pressure on regional currencies.
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