KUALA LUMPUR: Malaysia’s economy posted double-digit growth for the first time in over a year in the third quarter, boosted by rising domestic demand and strong exports, the central bank said on Friday.
Gross domestic product (GDP) in July-September rose 14.2% from a year earlier, at a faster pace than the 11.7% growth forecast in a Reuters poll and up from the 8.9% annual rise in the previous quarter.
That was also the fastest pace of growth since the second quarter of 2021, when the economy expanded 16.1%.
Bank Negara Malaysia (BNM) said the jump was driven by a continued expansion in domestic demand, a firm recovery in the labour market, robust exports, and ongoing policy support.
“Because of the healthy growth outturn, growth this year will exceed the 7% projected earlier,” BNM Governor Nor Shamsiah Yunus told a news conference. Malaysia’s economy has recovered strongly from a pandemic-induced slump, though risks of a global slowdown are clouding the outlook.
The government last month revised up its growth forecasts for 2022 to 6.5%-7.0% from 5.3%-6.3%, but it expects economic growth to slow to 4.0%-5.0% next year.
Headline inflation likely peaked at 4.5% in the third quarter and is expected to moderate thereafter, but it will remain elevated, BNM said.
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Inflation in Malaysia has been largely contained by record government subsidies and price control measures this year, but upside risks remain, with the central bank delivering its fourth consecutive 25-basis-point rate hike last week.
Since May, BNM has raised rates by a total of 100 basis points from a historic low of 1.75%, in a bid to temper inflation.
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