Malaysia’s GDP falls 2.7% in 3Q, marking a softer decline from Q2’s plunge
Malaysia’s gross domestic product (GDP) shrank 2.7% in Q3, recording a smaller contraction from the 17.1% plunge in Q2 earlier this year, according to figures released by the central bank.
Private consumption registered a smaller decline of 2.1% in Q3, compared to a fall of 18.5% in Q2. Public consumption also expanded to 6.9%, backed by higher government spending on supply and services.
The country’s net exports showed a strong rebound of 21.9%, attributed to a recovery in external demand. In contrast, Q2’s net exports plunged by -38.6%.
On the same note, the manufacturing sector rebounded by 3.3% due to higher demand for electronics and medical-related products. Other sectors registered a softer decline, compared to a sharper drop in Q2: services (-4%); mining and quarry (-6.8%); and construction (-12.4%).
In September, Malaysia’s unemployment rate fell by 0.55% month-to-month to 737,500 unemployed, from 741,600 unemployed, according to government data released this month.
Hiring increased in the manufacturing sector, as well as in services, which spans: wholesale & retail trade; accommodation; food & beverages; and education.