Alexa
  • Directory of Taiwan

Malaysia's economy grew 7.3 percent in 4th quarter, beating expectations

Malaysia's economy grew 7.3 percent in 4th quarter, beating expectations

Malaysia's trade-driven economy expanded at a stronger-than-expected 7.3 percent in the fourth quarter from a year ago, pushing annual growth above the government's forecast, the central bank said Wednesday.
Gross domestic product growth in the October-December quarter outstripped the revised 6.6 percent rise for the third quarter, and was the highest since the second quarter of 2004.
Growth for the full year 2007 was 6.3 percent, beating the government's 6 percent forecast and up from 5.9 percent in 2006, Bank Negara Malaysia said in a statement.
Ten economists polled by Dow Jones Newswires had expected average growth of 6.4 percent in the fourth quarter and 6.1 percent for the full year.
Bank Negara attributed the strong fourth quarter growth to strong private consumption and higher investment activities. It said prospects remained "favorable" this year despite global economic uncertainties.
The government forecast growth of between 6 and 6.5 percent this year.
"Expanding domestic demand will continue to provide strong support for the economy. Consumption activities are expected to remain resilient in view of the firm labor market conditions and high commodity prices," the central bank said.
Most economists however, aren't so upbeat on Malaysia's outlook, projecting growth to moderate.
"I am sticking to my 2008 growth forecast of 5.8 percent given the cautious recovery of exports after factoring in external risks," said Lee Heng Guie, chief economist at CIMB Bank in Kuala Lumpur.


Updated : 2021-05-16 07:21 GMT+08:00