Real Gross Domestic Product for Selected Countries (% annual change)

Selected Countries Forecast Actual (2018) Actual (2019)

US 1.8 2.9 1.9
Japan 0.7 0.1 1.3
Euro area 1.1 1.7 1.2
UK 1.2 1.6 1.0
China 5.9 6.5 6.0
South Korea 2.0 2.1 2.0
Singapore 0.1 2.6 0.1
Indonesia 5.1 5.2 5.0
Malaysia 4.4 4.4 4.4
Actual Performance Source: Malaysian Economic Third Quarter 2019
Forecast Source: Trading Economics Website

The international performance of global GDP recorded a slower growth of 3% in

third quarter of 2019 compare with 3.5% in third quarter of 2018 most probably due to the
easing external demand following ongoing trade restrictive policies and affected by the
heightening geopolitical tensions and structural factors.

On the other hand, Malaysian economy grew 4.4% in the third quarter of 2019. The
growth matches the market expectation despite it was the weakest GDP growth since the
third quarter last year which following a 4.9% growth rate in the previous three-month
period. Growth was mainly driven by the rises of domestic demand (3.5%) particularly the
private consumption.

The private consumption has a strong growth of 7% boosted by continued

expansion in employment and income. The private investment increased marginally by 0.3%
primarily channelled into the services and manufacturing sectors as these two sectors
continued to support growth. The improved government spending on supplies and services
led to a 1% growth of public consumption. While the contraction in public investment with
14.1% most probably due to the lower capital spending by public corporations, especially
in O&G-related industries, utilities and telecommunication segments. Net external demand
contributed positively to the GDP even both the exports and imports dropped at a rate of
1.4% and 3.3% respectively.

On the supply side, growth was mainly led by the services sector which rose 5.9%
which supported by the wholesale and retail trade; information and communication;
finance and insurance; and other subsectors. The manufacturing sector expanded softer by
3.6% supported by E&E; petroleum, chemical and other subsectors. The agriculture sector
expanded moderately by 3.7% even the expansion in oil palm and rubber due to the big
decline in forestry and logging subsector. The mining declined 4.3% which dragged down
by the lower production of crude oil and condensate. The construction shrank 1.5%
weighed down by the residential and nonresidential segments.