Source: The Edge
Malaysia's economy, as measured by gross domestic product (GDP), expanded 4.5% in 2016's fourth quarter (4Q) from a year earlier on domestic private expenditure and export growth. Full-year GDP grew 4.2% from a year earlier.
In 2015, GDP grew 5% on-year, according to Bank Negara Malaysia's statement today.
In 2016, 4Q private consumption and investment grew 6.2% and 4.9% respectively while net exports rose 5.8%, Bank Negara said.
"Overall, domestic demand expanded at a more moderate pace, as the improvement in private consumption and investment activity was more than offset by the decline in public expenditure.
"On the external front, net exports contributed positively to growth as real exports expanded at a faster rate than real imports," Bank Negara said.
On the supply side, the services, manufacturing, mining and construction sectors grew while the agriculture segment contracted.
Bank Negara said the manufacturing sector grew at a faster pace on higher growth in the domestic and export-oriented industries.
"In the agriculture sector, economic activity contracted at a slower pace, reflecting the diminishing impact of El Niño on crude palm oil yields," the central bank said.
Going forward, Bank Negara said domestic demand would be the key growth driver for the nation's economy.
"While the external environment may continue to remain challenging, the Malaysian economy will experience sustained growth with the primary driver being domestic demand," Bank Negara said.