GDP growth moderated more than expected. Based on advance estimate, Malaysia’s GDP growth moderated further to +4.4%yoy in 1QCY25 (4QCY24: +5.0%yoy), below our and market expectations. All major sectors recorded slower growth, with mining sector contracted at sharper pace.
GDP Growth Moderated
GDP fell -3.7%qoq from the previous quarter. On quarter-on-quarter basis, Malaysia’s GDP fell by -3.7%qoq in 1QCY25 (4QCY25: +2.7%qoq) based on data which is not seasonally adjusted. All sectors, except construction, contracted during the quarter.
Malaysia’s GDP growth to moderate to +4.0% this year. We forecast Malaysia’s GDP will experience a more moderate of +4.0% this year (2024: +5.1%), driven mainly by sustained growth in the domestic spending. We foresee external trade will grow at slower pace, taking into account the expected slowdown in external demand growth particularly from the US. – MIDF
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