KUALA LUMPUR: Malaysian economy grew at a slower pace year-on-year by 4.5 per cent in the second quarter of this year, a level not seen since the fourth quarter of 2016.
The growth which fell below a consensus estimate of 5.4 per cent, was mainly driven by private consumption that grew at its highest level since pre-Goods and Services Tax.
Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus said private sector activity continued to be the primary driver of growth as both private consumption and investment expanded strongly during the quarter.
She said the economy had lower support from net exports and public investment which contracted as some large projects near completion.
"On the supply side, the growth was affected by commodity-specific shocks. Growth in the mining sector contracted mainly due to unplanned supply outages, while the agriculture sector was affected by production constraints and adverse weather conditions," Shamsiah said at a press conference here today.
Moving forward, Shamsiah said the economy is expected to remain on a steady growth path.
She said Bank Negara has revised the economic growth forecast to five per cent for this year from the previous target of 5.5 to 6 per cent.