Malaysian Growth Beats Expectations With 6.4% in Q2

Malaysia’s economy expanded at a faster-than-expected pace in the second quarter, data showed on Friday, boosted by strong exports and robust consumption.

Gross domestic product (GDP) growth rose 6.4 percent from the year-ago period versus the 5.8 percent gain a poll by Reuters was expecting.

The ringgit extended gains on the news to hit a session high against the dollar. Malaysia stocks showed muted reaction, trading flat.

“The very strong export performance was better than expected,” Bank Negara Governor Zeti Akhtar Aziz told a news conference after the data release. “It’s very likely that the overall growth for the year will exceed growth projections made earlier.”

Zeti added that the central bank’s efforts to curb consumer debt were working as intended, noting a recent “moderation” in household debt. “If we were to be overly stringent in our policies it will result in an over adjustment,” she said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza