Malaysia’s economy expands 4.7% in Q4 2018
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The Malaysian economy grew at a faster pace of 4.7% in the fourth quarter (Q4) of 2018 driven by private sector activity. This compares with a 4.4% growth in Q3 2018. For 2018 as a whole, the local economy also expanded 4.7%. According to Bank Negara Malaysia (BNM), a rebound in exports of goods and services contributed towards the positive growth of net exports.
Headline inflation declined to 0.3% from 0.5% in Q3, mainly due to transport inflation turning negative.
The zerorisation of the Goods and Services Tax and the implementation of the Sales and Services Tax continued to exert an overall downward impact to headline inflation during the quarter.
BNM governor Datuk Nor Shamsiah Mohd Yunus said the Malaysian economy is expected to remain on a steady growth path with private sector demand being the main driver of growth.
She said headline inflation is expected to average moderately higher.
Questions & Answers
Q.What was the main reason for Malaysia's economic growth in the fourth quarter of 2018?
What was the main reason for Malaysia's economic growth in the fourth quarter of 2018?
Private sector activity was the primary driver behind the 4.7% economic expansion in Q4 2018. A rebound in exports of goods and services also contributed to this positive growth.
Q.How did the 2018 Q4 economic growth compare to the previous quarter?
How did the 2018 Q4 economic growth compare to the previous quarter?
The economy grew by 4.7% in Q4 2018, which was a faster pace than the 4.4% growth recorded in the third quarter of the same year.
Q.What was the overall economic growth for Malaysia in 2018?
What was the overall economic growth for Malaysia in 2018?
For the entire year of 2018, Malaysia's economy expanded by 4.7%. This matches the growth rate achieved in the final quarter.
Q.What caused the decline in headline inflation during Q4 2018?
What caused the decline in headline inflation during Q4 2018?
Headline inflation decreased to 0.3% mainly because transport inflation turned negative. The tax changes, including the zerorisation of the Goods and Services Tax, also played a part.
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