Private consumption stays as main driver of Malaysia economic growth — BNM

KUALA LUMPUR (Aug 13): Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus said today private sector consumption will remain as the main driver of the country’s economic growth as the government’s effort to mitigate the Covid-19 pandemic’s impact on people’s livelihoods and measures to expedite vaccination pave the way for higher consumption activities to rejuvenate the economy.

Recovery in the country’s exports will also lend support to local employment and consumption activities, according to Nor Shamsiah, who was speaking at a virtual press conference today in conjunction with the announcement of Malaysia’s economic data for the second quarter of 2021 (2Q21).

The cash-flow relief measures and other stimulus packages offered by the government to vulnerable households “will be the driver” of economic growth, she said.

According to BNM’s statement today, Malaysia’s economy, as measured by gross domestic product (GDP), grew 16.1% in 2Q21 from a year earlier.

In quarterly terms, the country’s 2Q21 GDP however contracted 2% from the preceding 1Q21, BNM said.

Source: The Edge Markets