Malaysia’s economy expanded at 4.5% in the fourth quarter of 2016, revealed Bank Negara Malaysia (BNM), on the back of country’s manufacturing and services sector.
But the central bank said for 2016, gross domestic product (GDP) grew at a slower pace of 4.2% when compared with the 5% expansion in 2015.
“On a quarter-on-quarter seasonally-adjusted basis, the economy recorded a sustained growth of 1.4% (3Q 2016: 1.4%),” it said.
The 4.5% growth in the fourth quarter of 2016 and the 4.2% expansion in 2016 were within the range projected by Treasury.
BNM is expecting the global economy to improve but remain on a moderate growth path.
“While there are indications of more sustained growth in the major economies in 2017, downside risks to global growth continue to prevail, arising from the volatility in commodity prices, policy uncertainties and growth prospects of the major developed economies, heightened risk aversions in the global financial markets as well as geopolitical developments,” it said.
BNM said while the external environment might continue to remain challenging, the Malaysian economy will experience sustained growth with the primary driver being domestic demand.
As its fortunes are tied to energy, Malaysia struggled to cope with plunging oil prices last year. Worse, the ringgit mirrored the movements of the commodity, sliding to the weakest since the 1998, despite oil prices stabilising.
