Malaysia GDP Growth Accelerates

(RTTNews) - Malaysia's economic growth accelerated in the second quarter on robust manufacturing and mining output despite tensions in the Middle East, official data revealed Friday.

Gross domestic product registered an annual growth of 5.8 percent in the second quarter, faster than the 5.4 percent rise in the preceding period, according to advance estimates from the Department of Statistics.

The stronger growth was underpinned by expansion in the services, manufacturing, mining and quarrying and construction sectors.

The service sector expanded 5.4 percent driven by the wholesale and retail trade. Manufacturing output growth strengthened to 7.5 percent from 5.9 percent.

Likewise, mining and quarrying output rebounded 10.2 percent and construction output climbed 6.6 percent. By contrast, the farm sector reported a 3.7 percent fall. On a quarterly basis, GDP grew 1.7 percent, rebounding from a fall of 4.4 percent in the first quarter. The statistical office is set to release revised data for the second quarter on August 14.

In the first half of the year, the economy expanded 5.6 percent compared to 4.5 percent in the same period last year. Another data from the statistical office showed that consumer price inflation slowed marginally to 1.9 percent in June on easing growth in transport cost growth. On a monthly basis, consumer prices remained flat compared to a 0.1 percent rise in May. Earlier this month, Bank Negara Malaysia had maintained its key interest rate at 2.75 percent for the sixth straight meeting.

The bank observed that developments surrounding the Middle East conflict would exert upward pressure on inflation but the impact will remain contained.

The bank projected the economy to grow firmly in the range of 4 percent to 5 percent this year.