15 Aug 2019
The latest Reuters poll has highlighted that Malaysia’s second quarter GDP is expected to grow, according to economic experts. Despite claims that the economy will not continue growing, Malaysia received encouraging estimations.
Economists who participated in the Reuters survey stated that Malaysia’s second quarter will have a growth of 4.8% - a faster growth pace than the first quarter, which was at 4.5%. The country’s Prime Minister Tun Dr Mahathir Mohamad and his government had to tackle a number of issues this year, thus making such predictions even more positive. The economists each estimated that the GDP will grow between 4.3%-5%.
ING economist Prakash Sakpal noted, ‘Malaysia is a notable exception to the export-led GDP slowdown that most of the Asian and global economies have been suffering currently amid intensified global trade war and a technology downturn…This was associated with acceleration of manufacturing growth over the same quarter as was evident from the monthly industrial production figures.’
No other Southeast Asian country has shown a faster growth in the second quarter. Malaysia could top the list if it reports its GDP growth by more than 4.5%. The industrial production increased by 4% in April and May, with strong performances in electricity generation and mining.
In order to help boost the chances for a faster growth pace, rate cuts of 25 basis points were made by Malaysia’s central bank.