Malaysia’s economy likely grew 3.4% year-on-year in Q4 —gov’t

People buy fruits at a market in Kuala Lumpur, Malaysia, Feb 18, 2016. REUTERS/Olivia Harris/File photo

KUALA LUMPUR  —Malaysia’s economy likely grew 3.4 percent year-on-year in the fourth quarter of 2023, slightly faster than the previous three-month period, official advance estimates showed on Friday.

The pace of expansion in the October-December period was led by the services sector which grew 4.7 percent on-year in the quarter, the Statistics Department said in a statement.

All other sectors including construction, manufacturing, mining and agriculture also registered growth, the department said.

READ: Malaysia posts weakest GDP growth in nearly 2 years as exports slump

In the third quarter of 2023, gross domestic product (GDP) had expanded 3.3 percent as strong domestic demand offset a slump in exports. Malaysia’s exports, which have been in decline since March, contracted 8 percent in 2023, according to trade data released separately on Friday.

Below gov’t projection

The department began releasing preliminary estimates on quarterly economic performance in October last year, citing demand for more timely statistics and to comply with international best practices.

READ: Malaysia announces new taxes, cuts subsidies in tighter 2024 spending plan

Malaysia’s full-year economic growth is expected to come in at 3.8 percent in 2023, the department said, below the government’s projection of a 4-percent expansion.

The government and central bank expect economic growth of 4 percent-5 percent in 2024.

Final fourth quarter and 2023 GDP figures are expected to be released on Feb. 16.