KUALA LUMPUR: Recent indicators have pointed to Malaysia's gross domestic product growing faster than the 5.8 per cent advance estimate in the second quarter (Q2) of 2024.
MIDF Research estimates the GDP growth for the quarter at 6.1 per cent, taking into accounting the recent indicators and sectoral updates.
"We noticed more encouraging domestic spending as shown by the robust growth in the services sector," It said today.
Bank Negara Malaysia is due to release the Q2 figure around noon today.
MIDF Research said domestic demand in Malaysia remains the key driver underpinning stronger growth momentum in Q2.
Consumer spending continued to increase as shown by the more robust rise in retail trade at 7.4 per cent year-on-year (YoY) in Q2 2024 (Q1 2024: 5.2 per cent YoY), the fastest expansion in four quarters.
The country's external trade, meanwhile, has been improving in recent quarters with exports of goods rising by 5.8 per cent in Q2 2024 (Q1 2024: 2.0 per cent YoY), sustaining growth for the second consecutive quarter.
"If we exclude re-exports, domestic exports recorded faster growth of 11.4 per cent YoY."
MIDF Research added that stronger production was in line with the external trade recovery.
"Malaysia's industrial production rose by 4.5 per cent YoY in Q2, the fastest quarterly growth since Q2 2022. This was underpinned mainly by the growth in manufacturing output (4.9 per cent YoY)."