There has been good news for the Malaysian economy in recent times, with expansion being measured in the three-quarters since Prime Minister Najib Razak took the bold step of raising fuel prices last September. Despite warnings in certain quarters that this would be a gamble to take, exports have recovered. Domestic demand also remains at healthy levels.
According to a spokesperson from the Central Bank in Kuala Lumpur
, the nation's gross domestic product rose by 5% last quarter from a year beforehand; this on top of a revised 4.4% in the second quarter. This amount exceeded every estimate bar three in a recent survey of financial analysts conducted by Bloomberg News
, where economists were anticipating a figure of 4.7%.
After dropping during the first six months of 2013, Malaysia's export market has risen in the three months through September. One influence on this upturn has been the modest knock-on effect of the global recovery. Bank Negara Malaysia
has held its benchmark interest rate at 3% again to support growth in the economy, after predicting that domestic demand is likely to ease during a period of government restraints on public spending.
According to one economist at Singapore-based Nomura Holdings Inc
., discussing the Malaysian situation: “We've seen some improvement in the export numbers and that's really a bigger drive of growth. External demand is not going to be that strong. Also, domestic demands seems to be slowing because of fiscal consolidation and the government policy to try and reduce investment spending.
Malaysia's currency climbed to its highest in almost three weeks, with the USA Federal Reserve
Chairman nominee, Janet Yellen, indicating her organization would be pressing on with their unprecedented fiscal stimulus, with this trend set to continue until the recovery was seen to be robust. The currency appreciated by as much as 0.4% to 3.191 per US dollar at one point recently, making for the steepest rise since last October, according to data released by Bloomberg.