KUALA LUMPUR: Malaysia’s economy grew a solid 5.1 percent in the fourth quarter of last year as exports picked up, the central bank announced yesterday, as economists said rising inflation remained manageable.
Southeast Asia’s third largest economy expanded 4.7 percent for the full year, down from 5.6 percent for 2012 but in line with the government’s forecast, Bank Negara said in a press release.
Fourth quarter growth was “supported by private sector demand and improvement in exports,” it said, adding growth was expected to stay on a “steady trajectory”.
Exports rose 2.4 percent in 2013 year-on-year, picking up in the second half due to demand from Malaysia’s neighbours, as well as its largest trading partner China.
But following the government’s moves since September to cut fuel, sugar and other subsidies, which cost it billions and have led to a high debt, complaints of the rising cost of living have grown.
“While domestic demand is expected to moderate following the ongoing fiscal consolidation, the external sector is expected to benefit from the improving global conditions,” Bank Negara said.
Inflation stood at 3.2 percent in December compared to the same month a year earlier.
AFP
