BNM: Malaysia’s GDP grows 5.6% y-o-y in 1Q2023

KUALA LUMPUR (May 12): Malaysia’s economy, as measured by gross domestic product (GDP), grew 5.6% year-on-year (y-o-y) in the first quarter of 2023 (1Q23), driven by further expansion of household spending, strong growth in employment as well as continued expansion, which have supported private consumption spending. 

Investment activity was underpinned by capacity expansion and continued implementation of multi-year projects, while inbound tourism continued to recover, lifting services exports and partially offsetting the slower goods export growth, according to Bank Negara Malaysia (BNM). 

“On the supply side, the services and manufacturing sectors continued to drive growth. 

“On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.9% (4Q 2022: -1.7%),” the central bank said in a statement on Friday (May 12). 

Despite global headwinds, the Malaysian economy is projected to expand by 4% to 5% in 2023, driven by firm domestic demand, improving employment and income as well as continued implementation of multi-year projects that would support consumption and investment activity.

“Risks to Malaysia’s growth outlook are relatively balanced. Upside risks stem mainly from domestic factors. These include stronger-than- expected tourism activity and implementation of projects including those from the re-tabled Budget 2023,” said BNM governor Tan Sri Nor Shamsiah Mohd Yunus. 

“Meanwhile, downside risks could emanate from lower exports due to weaker-than-expected global growth and more volatile global financial market conditions,” she added. 

More to come