Economy grew at slower pace of 5.9% in Q4 of 2017 – Business News


KUALA LUMPUR: Malaysia’s economy expanded at a slower pace of 5.9% in the fourth quarter of 2017 but it was slightly higher than the 5.8% growth forecast by economists. 

The Statistics Department said that growth was slower than the 6.2% in the third quarter of 2017. However, the economy grew much stronger compared with the 4.5% in Q4 of 2016.

“On a quarter-on-quarter seasonally adjusted, GDP posted a growth of 0.9 per cent (Q3 2017: 1.8%),” it said.

The Statistics Department said For 2017, Malaysia’s economy expanded at a faster pace of 5.9% compared with 4.2% in 2016 — with a value of RM1.173 trillion at constant prices and RM1.352 trillion at current prices.

For the Q4 of 2017, the services, manufacturing and agriculture sectors have been the anchor on the production side, with all sectors recorded positive growth except mining and quarrying. 

On the expenditure side, the performance was driven mainly by private final consumption expenditure.

Services sector recorded strong growth of 6.2% in Q4 2017,  underpinned by wholesale & retail trade and information & communication sub-sectors. 

Manufacturing sector grew at a slower pace of 5.4% (Q3 2017: 7.0%). Electrical, electronic & optical products continued to be the main impetus in manufacturing for this quarter, albeit at a moderate growth rate of 5.7%. 

Agriculture sector recorded a strong 10.7% growth which was the highest growth since the third quarter of 2011. The expansion in this sector was mainly driven by the impressive performance of oil palm at 24.3% following a higher yield of fresh fruit bunches in this quarter. 

GDP by expenditure approach

Private final consumption expenditure grew 7% in Q4 of 20017 (Q3 2017: 7.2%), while on a quarter-on-quarter seasonally adjusted increased to 1.8%. 

The department said the momentum was contributed by the consumption on food & non-alcoholic beverages,
communication, restaurants & hotels and housing & utilities.

As for gross fixed capital formation (GFCF), it recorded slower growth of 4.3% from 6.7% in Q3. 

The slower performance of GFCF in this quarter was due to the moderation in machinery & equipment at 8.3 per cent as compared to the 11.5% in Q3.

Exports recorded a growth of 7.1% due to moderation in external environment. Imports grew at 7.4%.

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