Malaysia’s National Statistics Office announced today (April 19) that the country’s gross domestic product (GDP) expanded by 3.9% year-on-year in the first quarter of 2024, marking the fastest growth in one year. This robust expansion serves as a positive indicator that Malaysia’s economy is on a path of recovery.
According to the Statistical Office report, the service sector played a significant role in driving domestic economic growth, while the manufacturing sector rebounded by 1.9% in Q1/2024 after experiencing contraction in Q4/2023.
The data underscores Malaysia’s return to a robust growth trajectory after a period of slight expansion last year, which was influenced by a slowdown in global demand. The Central Bank of Malaysia forecasts that the country’s GDP will expand by approximately 4% to 5% this year, buoyed by the recovery of overseas demand.
In addition to the positive GDP figures, Malaysia’s Ministry of International Trade and Industry reported a trade surplus of 12.8 billion ringgit ($2.7 billion) in March, surpassing analysts’ expectations.
However, Malaysia’s exports experienced a decline of 0.8% year-on-year in March, marking the second consecutive month of decrease, while imports surged by 12.5% year-on-year during the same period.
Despite the challenges posed by fluctuations in trade figures, Malaysia’s overall economic performance in the first quarter of 2024 reflects encouraging signs of recovery and resilience in the face of global economic uncertainties.