Malaysia’s GDP growth dips despite 9% lift in private consumption
KUALA LUMPUR -- Malaysia's GDP growth edged down to 4.4% y/y in Q3 from 4.5% y/y in Q2, with private consumption - which rose 9.0% y/y - the primary contributor to growth, boosted by the 'tax holiday' in July and August.
A rise in 'machinery and equipment investment' buoyed overall investment growth. On a sectoral basis, lingering supply issues in the agriculture and mining sectors dragged down overall growth.
ANZ Bank in a research note says that, given the weaker than expected Q3 GDP print, ANZ's 5.1% growth forecast for 2018 is not likely to be achieved, and the bank is putting the forecast under review for a downgrade.
"With inflation expected to remain muted till mid-2019, we expect Bank Negara Malaysia (BNM) to maintain its current accommodative stance. We see the Overnight Policy Rate (OPR) unchanged at 3.25% for some time."www.live.anz.com(ATI).