Malaysian Gdp Growth In Q3 Was Strong

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Malaysian Gdp Growth In Q3 Was Strong

UOB - Malaysian GDP Growth In Q3 Was Strong

According to the latest official data, the Malaysian GDP grew by 3.3% on a y/y basis during Q3 2023. According to UOB Group, the GDP growth numbers during the 3rd quarter show the strength of the Malaysian economy.

During Q2 2023, the GDP growth of Malaysia was 2.9%, while the Q3 growth was even higher. In addition, the Q3 figures were also above the forecasts, which suggests that the pace of growth was much higher than initially anticipated.

Malaysia Posts 9.1 Billion MYR Account Surplus

If we look in the context of seasonally adjusted numbers, the real GDP growth was around 2.6% on a q/q basis. In fact, the growth during this quarter was one of the largest if we look at the last 5 quarters.

This suggests that the economic recovery is sustained despite the rising challenges. Furthermore, the accommodative policy of the Malaysian central bank is also helping the economy to achieve growth targets.

Overall, the growth during Q3 2023 was mainly driven by the higher domestic demand combined with the stock replenishment operations. Furthermore, various economic sectors such as construction, agriculture, & services also showed improvement during the Q3.

In fact, healthy growth in these areas allowed the Malaysian economy to offset the slower growth in the mining & manufacturing sector.

If we look at the external sector of Malaysia, it remained weak, but it was still not enough to prevent the country from recording a current account surplus. For now, the country has managed to post a 9.1 billion MYR surplus, which accounts for 2% of the GDP.

Against this backdrop, UOB analysts believe that the 2023 GDP growth in Malaysia will be around 4%. This is also in line with the growth target set by the country's Ministry of Finance.

In 2024, analysts believe that the growth rate will go higher and touch 4.6%. On the contrary, the Ministry of Finance has set an estimate of around 4 to 5% for the year 2024.

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