KUALA LUMPUR: Malaysia’s economy is estimated to have grown 3.9% in the first quarter of 2024 from a year earlier, official advance figures showed on Friday, driven by growth in the services sector.
The advance estimates released by the Statistics Department compared with annual growth of 3.0% in the final quarter of 2023, when subdued exports weighed on growth.
Malaysia’s chief statistician Mohd Uzir Mahidin said all main sectors experienced positive growth in the first quarter of 2024, led by a 4.4% year-on-year increase in the services sector.
“(This was) supported by the wholesale and retail trade, transport and storage, and business services sub-sectors,” he said in a statement on Friday.
Malaysia’s economy grows 3% in Q4, below forecast
The manufacturing sector rebounded to 1.9% growth in the first quarter of this year from a 0.3% contraction in the final quarter of 2023, while the agriculture sector rose 1.3% year-on-year in the same period, driven by oil palm and livestock production, Mohd Uzir said.
Malaysia’s exports fell 0.8% in March from a year earlier, having also decreased by the same amount in February, separate data from the trade ministry showed on Friday.
The central bank last month forecast a 5% rise in exports in 2024, recovering from an 8% contraction last year. The central bank held its key interest rate steady at 3.00% at a policy meeting in March, saying it was at a level that was supportive to the economy.
The government and central bank expect full-year economic growth of 4%-5% in 2024. Malaysia’s full-year 2023 growth was 3.7%, a sharp drop from a 22-year high of 8.7% in 2022.
Final first quarter GDP figures are expected to be released on May 17.
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