Malaysia’s economy grew at its fastest pace in a year in the second quarter. This was due to rising domestic demand and the recovery in exports.
Gross domestic product (GDP) rose 8.9% year-on-year in the April-June period. The central bank said this was faster than the forecast growth of 6.7% and a year-on-year increase of 5% in the previous quarter.
Seasonally adjusted GDP increased by 3.5% in the April-June period compared with the previous three months, when quarterly growth was 3.8%.
Malaysia’s economy has recovered strongly since the borders reopened in April.
Bank Negara Malaysia (BNM) said full-year growth in 2022 would be at the high end of the previous forecast range of 5.3% to 6.3%.
A gradual adjustment of the policy rate is necessary to avoid harsher measures in the future, BNM said, adding that any steps must be measurable and gradual.
The central bank raised its key interest rate in July for the second time in a row.