By Ying Xian Wong
KUALA LUMPUR–Malaysia’s economy expanded in the third quarter, advance estimates show, driven by growth in the services sector.
Gross domestic product increased 3.3% in third quarter, mainly driven by services, which notched growth of 5.1% versus 4.7% in the second quarter, the Department of Statistics said Friday.
The agriculture sector showed a sight recovery from a decline in the preceding quarter, while mining & quarrying and manufacturing contracted, the department said.
The advance third-quarter GDP print compares with the 2.9% on-year expansion recorded in the second quarter.
The quarterly result came in above what economists at Malaysian investment bank Kenanga had expected. The economists had predicted growth of 1.7% for the third quarter, pointing to sustained weakness in recent high-frequency indicators like exports, and relatively lower commodity prices.
But they had also expected growth to be supported by resilient domestic demand, increased tourist arrivals and spending, Kenanga IB economist Muhammad Saifuddin Bin Sapuan said.
However, Friday’s data indicate that growth during the first nine months of 2023 is down sharply on the year. Factoring in the third-quarter numbers, the department said it puts nine-month growth at 3.9%, compared with 9.2% in the same period last year.
The GDP data comes after figures earlier this week showed that the Southeast Asian economy’s exports tumbled in September as slower global demand and uncertainty about commodity prices dragged on shipments of electrical, petroleum and palm-oil products.
Final third-quarter GDP data is due Nov. 17.
Write to Ying Xian Wong at [email protected]
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