Malaysia’s GDP 5.3% -Ambank’s projection

Malaysia’s gross domestic product (GDP) to grow at 5.3 percent year – on – year in the second quarter of 2024 as there is a sustained domestic demand and better exports, said Ambank Group.

This forecast was mentioned in a note released last night

It is based on gradual improvements of the external sector, improved distributive trade sales growth, robust labour market and sustainable low inflation in the quarter.

“Base effects also matter given that Malaysia’s growth in the same quarter in the preceding year was weighed down by the semiconductor downcycle which was no longer the case in the previous year,” the note stated.

Another contributing factor for the positive projection is the Statistics Department would be releasing Malaysia’s advance second quarter 2024 GDP estimates later today.

AmBank said that there is a rising possibility of an upgrade on the fiscal year 2024 GDP growth if its second quarter forecast materialise.

“Should 2Q 2024 come in at 5.3 percent y-y-y or higher, out in-house Malaysia’s fiscal year 2024 GDP should correspond accordingly,” the bank said since the current fiscal year 2024 GDP growth forecast stand at 4.5 percent y-o-y.

Private consumption is expected to remain well supported amid more favourable labour markets prospects.

Inflation has stabilised with non-food and food and beverage inflation aligned with headline inflation.