KUALA LUMPUR (Reuters) -Malaysia’s economy grew 5.2% in the third quarter from a year earlier, official advance estimates showed on Friday, accelerating from the first half of the year on strong domestic consumption.
In the second quarter, Malaysia’s gross domestic product had expanded by 4.4% on an annual basis, matching the pace set in the first three months of the year, despite a slowdown in exports.
The increase in the July-to-September quarter was underpinned by solid performances in all sectors, with domestic demand continuing to drive growth, the statistics department said in a statement.
Domestic consumption received a further boost by a series of government measures to support the economy, including a cut in interest rates in July and a one-off disbursement of cash aid to eligible Malaysians in August, Chief Statistician Mohd Uzir Mahidin said.
“Sustained capital investment and rising external demand further bolstered economic expansion, despite headwinds from uncertain trade policies,” he said.
Final third-quarter GDP figures are expected to be released on November 14.
Malaysia’s economy is projected to grow between 4% and 4.8% this year, slowing from last year’s 5.1% due to uncertainties around global trade and tariffs. In August, the United States imposed a levy of 19% on imports from Malaysia.
The government said this month that it expects economic growth of between 4% and 4.5% next year.
The services sector grew 5.1% from a year earlier in the third quarter, while manufacturing rose 4.0%, Mohd Uzir said.
The mining sector jumped 10.9% after declining 5.2% in the previous quarter, while construction was up 11.2%, he said.
Separate data released on Friday showed export growth jumping to 12.2% on an annual basis in September, up from 1.9% in August and surpassing an analyst forecast of 3.4%.
(Reporting by Rozanna Latiff; Editing by David Stanway)
