Malaysia reports 8.9-percent GDP growth in Q2

The headquarters of Bank Negara Malaysia (Photo:https://www.nst.com.my/)

Kuala Lumpur (VNA) - The Malaysian economy posts a stronger growth of 8.9% in the second quarter of 2022 compared to a 5-percent expansion in the first quarter.

The increase was attributed to imrpoved domestic demand, underpinned by the steady recovery in labour market conditions and ongoing policy support.

Malaysia’s exports remain supported by strong demand for electric and electronic (E&E) products. By sector, the services and manufacturing sectors continued to drive growth, according to Bank Negara Malaysia.

The higher growth was also reflective of normalising economic activity as the country moved towards endemicity and reopened its international borders, the bank said.

During April-June, headline and core inflation of the country increased to 2.8% and 2.5% respectively, mainly due to rising food prices.

Bank Negara said elevated commodity prices and Malaysia's economic recovery helped to cushion the downward impact from the external developments on the ringgit during the quarter.

It added that while domestic financial markets will continue to be subjected to episodes of heightened volatility, spillovers to domestic financial intermediation were expected to remain broadly contained, supported by Malaysia's healthy external position and strong banking system./.