Malaysia’s gross domestic product (GDP) grew at 5% in 2015, against 6% in 2014, which was better than the 4.9% economists expected.
The country’s economy grew by 1.5% quarter-on-quarter in the final three months of last year, up from 0.7% in the third quarter (Q3) and ahead of forecasts for 1.2%.
The GDP growth for the country was recorded as 5.6% in the first quarter (Q1) of 2015 before slowing down at 4.9% in Q2, 4.7% in Q3 and 4.5% in the final quarter.
The Statistics Department said Malaysia’s economy grew 5% last year with a value-add of RM1,062.6 billion at constant prices and RM1,156.9 billion at current prices.
A separate statement by Bank Negara Malaysia (BNM) said, the Q4 growth was spurred mainly by private sector demand, while on the supply side, it was underpinned by the major economic sectors.
Despite the tough economic climate during the quarter, BNM said the private sector remained the key driver of economic growth.
With stable wage growth and labour market conditions, private consumption rose to 4.9% in Q4 from 4.1% in Q3. On the other hand, private investment growth slowed to 5% from 5.5% in Q3, which was driven by capital spending in the manufacturing and services sectors.
However, public investment weakened at 0.4% from 1.8% in Q3, following lower growth in fixed assets spending by the Federal government.
Public consumption was able to sustain its growth at 3.3% from 3.5% in Q3 as the stronger growth in emoluments was offset by slower growth in supplies and services expenditure.
On the supply side, growth of the services sector in Q4 was marginally higher, underpinned by the consumption- and trade-related activities, mainly by domestic-oriented industries, while that of construction was supported by the civil engineering and residential sub-sectors.
Meanwhile, the agriculture sector experienced a moderate growth in Q4 due to the lower production of palm oil, while the mining sector slowed down because of the lower production of both crude oil and natural gas.
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