Malaysian economic growth weakest in nearly 2 years as exports fall

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Malaysian economic growth weakest in nearly 2 years as exports fall
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KUALA LUMPUR — Malaysia's economic growth hit the lowest in nearly two years in the second quarter due to sliding exports and a global slowdown, prompting the central bank on Friday (Aug 18) to warn that full-year growth will come in at the lower end of its previous forecast. Malaysia's export-oriented economy is dependant on global growth, which is facing...

KUALA LUMPUR — Malaysia's economic growth hit the lowest in nearly two years in the second quarter due to sliding exports and a global slowdown, prompting the central bank on Friday to warn that full-year growth will come in at the lower end of its previous forecast.

Economists surveyed by Reuters had forecast gross domestic product growth at 3.3 per cent in the April to June period. Malaysia could also see lower-than-expected commodity production due to the stronger impact from El Nino and prolonged plant maintenance, he said. Malaysia is one of the world's biggest exporters of palm oil and liquefied natural gas.

Other data on Friday showed Malaysia's exports in July slumped 13.1 per cent from a year earlier, much more than economists forecasts for a 11.3 per cent drop. Imports also fell more than expected. "In that sense, risks that GDP might grow below four per cent to five per cent projected growth is quite high," Mohd Afzanizam said.

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