Malaysia: Lacklustre growth even as consumer continues to spend – Standard Chartered
|Analysts at Standard Chartered note that Malaysia’s Q3 GDP growth moderated to 4.4% y/y from 4.9% in Q2.
Key Quotes
“While the print was in line with our expectations, sequential growth slowed below 1% to register 0.9% q/q seasonally adjusted. This is the third consecutive quarter of lacklustre growth. Quarterly expansion has averaged c.1% q/q (seasonally adjusted) so far in 2019, versus an average 1.3% from 2012-18.”
“Private consumption remained relatively resilient. Even with a high base effect (due to the consumption tax changes), private spending rose 7% y/y, slightly below the average 7.1% expansion from 2012-18.”
“Looking to 2020, a potential bottoming out (but no strong recovery) of global growth may improve onshore growth sentiment. We estimate that the Malaysian economy may run close to zero potential growth in 2020. However, downside risks remain and could turn the output gap negative.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.