Malaysia’s 2023 GDP growth aligns with Asean nations
Published on: Friday, February 16, 2024
By: Bernama
On the demand side of Malaysia’s economy, the growth is led by private final consumption or household expenditure, which increased by 4.7%, says the statistics department.
PETALING JAYA: Malaysia’s 2023 gross domestic product (GDP) growth is in tandem with other Asean countries which also showed moderate growth, said the statistics department.
It highlighted that Singapore grew 1.1% in 2023 from 3.8% in 2022, Indonesia expanded by 5.1% from 5.3% while the Philippines recorded a 5.6% growth compared with 7.6%previously.
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“Other developed countries also recorded modest growth such as South Korea at 1.4% (2022: 2.6%) and the UK at 0.1% (2022: 4.3%).
“However, China expanded further at 5.2% from 3% in 2022 while the US increased 2.5% from 1.9% in 2022,” it said in a statement.
Malaysia’s overall economic growth in 2023 grew 3.7% versus 8.7% in 2022 driven by the services sector with a growth of 5.3%, followed by the construction (6.1%) and manufacturing (0.7%) sectors.
The manufacturing sector grew at a slower pace following a higher base in the preceding year and weaker global external demand.
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On the demand side of the economy, the growth was led by private final consumption or household expenditure increased by 4.7%, followed by gross fixed capital formation (GFCF) at 5.5% and government final consumption expenditure by 3.9%.
“Private final consumption or household expenditure, which contributed 58.9% to GDP, grew 4.2% in the fourth quarter (Q4) of 2023, backed by higher expenditure in transport (10.1%), food and non-alcoholic beverages (5.9%) and housing, water, electricity, gas and other fuels (5.6%).
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“On quarter-on-quarter seasonally adjusted, the overall performance posted a decrease of 3% (Q3 2023: -0.7%),” chief statistician Uzir Mahidin commented.
He said GFCF grew by 6.4% in the quarter, while government final consumption expenditure grew by 7.3% led by higher spending on supplies and services.
On a quarter-on-quarter seasonally adjusted basis, the government’s final consumption expenditure increased by 0.6%.
He also said that exports and imports declined by 6.3% and 2.9% respectively in Q4.
Thus, net exports continued to decline by 35.6% as compared to a decrease of 22.7% in the preceding quarter.
On a yearly basis, both exports and imports declined by 7.9% and 7.6%, respectively, with net exports recording a decrease of 11.3% in 2023.
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