BENGALURU- Malaysia’s economic growth likely slowed to its weakest in nearly two years in the second quarter on an annual basis as private consumption growth weakened and exports fell sharply, a Reuters poll of economists found.
Southeast Asia’s third-largest economy grew 3.3 percent in the April-June quarter from a year earlier, according to the median forecast of 21 economists polled July 31-Aug. 15, down from 5.6 percent in the previous quarter.
If realized, that would be the slowest pace since Q3 2021. Forecasts ranged from 2.0 percent to 6.0 percent .
“High frequency indicators…point towards a slower growth in domestic activity. Retail sales slipped to single-digit growth during the April-May period from double-digit prints in Q1, reflecting slower private consumption demand,” wrote Krystal Tan, economist at ANZ.
“We believe domestic demand will slow further in the second half as real rates continue to rise, despite the subsidy coverage and the lower income tax rate. There is also little evidence the slowdown in external demand will reverse anytime soon.”
