UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting assess the latest GDP releases in the Malaysian economy.
“Real GDP strengthened to 5.0% y/y in 1Q22 (4Q21: +3.6%), much higher than our estimate (4.5%) and Bloomberg market consensus (4.0%). On a seasonally adjusted quarter-on-quarter basis, real GDP rose by 3.9% (4Q21: +4.6% q/q).”
“Growth was driven by expansion in services (+6.5%), manufacturing (+6.6%), and agriculture (+0.2%), cushioning the persistent weakness in construction (-6.2%) and mining (-1.1%) sectors. Domestic demand rebounded by 4.4%, led by stronger private consumption (+5.5%), an uptick in private investment (+0.4%), and higher public consumption (+6.7%). Inventory restocking added 2.2pts to overall growth, offsetting a drag from net trade (-1.5ppts).”
“With a strong start to the year and further support from reopening of international borders as well as easing of restrictions, we expect GDP growth to stay robust. Low base effects will also provide a fillip to growth. Key challenges are mainly from the external side such as broader risks related to the Russia-Ukraine crisis, effects of Fed's aggressive tightening path, extended slowdown in China's economy, global supply chain disruptions, elevated inflation pressures, and potential threat of new COVID variants. We keep our full-year growth forecast at 5.5% (2021: 3.1%, official est: 5.3%-6.3%).”
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.