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Malaysia Q1 GDP growth rate expected to slow to 4.4pc

Published: May 14, 2019 12:57:04 | Updated: May 17, 2019 13:31:51


Representational image (Collected)

Malaysia’s gross domestic product (GDP) growth rate in the first quarter (Q1) was estimated to slow to 4.4 per cent amid declines in all segments, according to analysis Tuesday.

Maybank Investment Bank Research said in a report that there were plenty of signs of slower growth, with supply-side data pointing to a deceleration in the first GDP growth to moderate on slower gains in services, manufacturing and construction amid declines in mining and rebound in agriculture.

Demand-side indicators also point to slower growth in both domestic demand (consumer spending, government spending, investment) and net external demand, it added.

Malaysia will release its first-quarter GDP on Thursday. The country's economy grew at 4.7 per cent in the fourth quarter last year, reports Xinhua.

Maybank full-year real GDP growth forecast stands at 4.7 per cent, the same growth rate as last year.

In a separate report, Hong Leong Investment Bank Research maintained its growth estimation at 4.4 per cent in the first quarter, following the release of various indicators.

"The moderation is expected to be driven by broad-based moderation across most sectors, larger contraction in mining index that offset the rebound in the agriculture sector," said the research centre.

It maintained its 2019 GDP at 4.6 per cent, but warned that the recent escalation of trade frictions poses a downside risk to its forecast as a prolonged trade dispute would lead to a further pullback in investment and trade activities.

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