Q3 growth slips to 5.3pc on slowing exports
KUALA LUMPUR, Nov 22 — The country’s economy grew just 5.3 per cent in the third quarter after a strong first half, with Bank Negara saying today the 40 per cent dip from previous quarters was due to slowing external demand.
The economy had expanded by 10.1 per cent in the first quarter and 8.9 per cent in the second quarter. In terms of a quarter-on-quarter basis, the economy grew 2.4 per cent in the third quarter.
“We are very likely to have growth of 6-7 per cent for this year,” said Bank Negara governor Tan Sri Zeti Akhtar Aziz (picture) at a press conference following the announcement of the third-quarter GDP figure.
She also said the challenge for next year is to maintain domestic demand and that current interest rates were supportive of economic activity with loan growth between 10 and 11 per cent.
“It is important for us to ensure that our domestic demand remains resilient,” she said.
The central bank chief added that she didn’t see any risk currently from asset bubble formations.
Economists had predicted third-quarter GDP growth to be between 5 per cent and 7.8 per cent.
Bank Negara said domestic demand in the third quarter expanded 5 per cent sustained by private consumption and capital spending.
