KUALA LUMPUR — Malaysia's economy is expected to have grown 5.8 percent in the second quarter (Q2) of 2024 from a year earlier, official advance estimates showed on Friday, driven by expansion in the services sector and a recovery in exports.
The figure for the April-June period, provided by the statistics department, compared to the stronger-than-expected annual growth of 4.2 percent in the first quarter.
Chief statistician Mohd Uzir Mahidin said the estimated growth was driven by the services sector, which recorded expansion of 5.6 percent from 4.7 percent in the previous quarter.
The growth would be further bolstered by better performances in the wholesale and retail trade, transportation and storage, and finance and insurance subsectors, Mohd Uzir added.
"In the external sector, the total trade, exports and imports experienced an increase as compared to the same period last year," he said in a statement.
Malaysia's exports rose 1.7 percent in June from a year earlier, below market expectations, government data showed on Thursday.
Exports recorded an annual growth of 3.9 percent in the first half of 2024, the trade ministry said.
For the first half of 2024, gross domestic product (GDP) increased by 5 percent compared to 4.1 percent in the same period last year, according to the statistics department.
Malaysia's economy is expected to continue its growth momentum, supported by domestic and export-driven factors, with a positive outlook for the remainder of the year, the department added.
The government and central bank have projected economic growth of 4 percent to 5 percent in 2024.
Last week, the central bank held its key interest rate steady at 3.00 percent, saying inflation would remain manageable even as it trended higher following diesel subsidy cuts last month.
Bank Negara Malaysia also said resilient domestic spending, higher exports and a pickup in tourist arrivals pointed toward sustained strength in economic activity.
It maintained its projection for headline inflation to range between 2 percent and 3.5 percent for the year.
The official second-quarter GDP figures are expected to be released on August 16.