By Rozanna Latiff
KUALA LUMPUR (Reuters) – Malaysia’s economy grew at its fastest annual pace in a year in the second quarter, boosted by expansion in domestic demand and resilient exports.
Gross domestic product (GDP) in April-June surged 8.9% from a year earlier, the central bank said. This was faster than the 6.7% growth forecast in a Reuters poll and up from the 5% annual rise in the previous quarter.
It was also quicker than any annual rate seen since the second quarter of 2021, when GDP was up 16.1% from a low year-earlier base.
Seasonally adjusted GDP for April-June was up 3.5% on the previous three months, when quarterly growth was 3.8%.
Malaysia’s economy has been on a strong recovery path since the country reopened its borders in April.
Full-year growth for 2022 would be at the upper end of the previously forecast range of 5.3% to 6.3%, said the central bank, Bank Negara Malaysia (BNM).
Gradual adjustments in the overnight policy rate would be necessary to avoid stronger measures in the future, BNM said, adding that any moves would be done in a measured and gradual manner.
The central bank lifted its benchmark interest rate for the second straight meeting in July.
(Reporting by Mei Mei Chu and Rozanna Latiff; Writing by Bradley Perrett; Editing by Shri Navaratnam)