MALAYSIA'S ECONOMY GROWS FASTER THAN EXPECTED, INFLATION RISKS CLOUD OUTLOOK

Malaysia's economy grew faster than expected in the first quarter of 2024, helped by household spending and a turnaround in exports, though some analysts said the rebound could be short-lived with price pressures set to increase. Gross domestic product rose 4.2% in the January-March period from a year earlier, central bank and government data showed on Friday, surpassing the 3.9% growth forecast and advance estimates released by the government. Annual growth in the final quarter of 2023 was revised down slightly to 2.9%.

Exports rose 2.2% on an annual basis in the first quarter, after three consecutive quarters of contraction. "Exports are expected to improve for the year... supported by sustained demand," BNM Governor Abdul Rasheed Ghaffour said. Risks to expansion include weaker-than-expected global growth, lower commodity prices, and further escalation of geopolitical conflicts, he said. On a quarter-on-quarter seasonally adjusted basis, the Malaysian economy grew 1.4%, compared with a 1% contraction in the fourth quarter of last year.

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