Malaysia’s Economic Growth Moderates in Q4 2024

Malaysia's economy grew by 5% in Q4 2024, surpassing forecasts but falling short of the previous quarter's 5.4%. Domestic demand and investment drove growth, despite challenges in commodities. Full-year growth was 5.1%, with inflation at 1.8%. The central bank maintained interest rates, anticipating steady growth in 2025.

Malaysia's economy expanded by 5% in the fourth quarter of 2024 compared to the same period a year earlier, although this was a slower pace than the previous quarter's 5.4% growth. This figure exceeded both the official advance estimate and analysts' predictions of 4.8% in a Reuters survey.

According to Bank Negara Malaysia, growth was fueled by domestic demand, robust investment, and consistent household spending. However, the economy faced challenges, including a contraction in the commodities sector due to lower oil palm output and a continued decrease in oil production.

The annual growth rate for 2024 stood at 5.1%, aligning with government estimates, while inflation eased slightly to 1.8% in Q4. The central bank opted to keep its key interest rate at 3%, citing strong growth and stable inflation, though it warned of possible currency volatility going forward.

(With inputs from agencies.)