KUALA LUMPUR (Aug 17): The Malaysian economy, as measured by gross domestic product (GDP), grew 4.5% year-on-year (y-o-y) in the second quarter of 2018 (2Q18), driven by the private sector, according to Bank Negara Malaysia (BNM).
BNM said in a statement today supply disruptions resulted in the slower y-o-y economic growth of 4.5% in 2Q18 compared to the 5.4% expansion in 1Q18.
"Private sector activity continued to be the primary driver of growth as both private consumption and investment expanded strongly during the quarter. On the supply side, growth was affected by commodity-specific shocks. Growth in the mining sector contracted due mainly to unplanned supply outages, while the agriculture sector was affected by production constraints and adverse weather conditions.
"Going forward, the Malaysian economy is expected to remain on a steady growth path. Growth is expected to be sustained, supported mainly by private sector activity. Positive labour market conditions and capacity expansion will continue to support robust private consumption and investment respectively," BNM said.
At a press conference here today, BNM Governor Datuk Nor Shamsiah Mohd Yunus said major economic sectors, notably the services and manufacturing sectors, remained supportive of growth.
On the demand side, Nor Shamsiah said production weakness was reflected in the lower net export growth while public investments contracted.