Malaysia’s GDP grew 4.3% YoY in the second quarter of 2013, slightly faster than 4.1% YoY in the previous quarter.
While it is faster growth, I find the numbers worrying because if it was not for government spending, overall growth would have been much worse. Investment growth was down, private consumption was down and exports contracted.
The government spending was just because of electioneering. Election saved Malaysia. Really (This can be confusing since federal government spending actually decreased from a year ago. Yea, I was surprised to find that out. The GDP government spending includes non-federal government spending. Please take note of that).
The good news is that, I think things will be brighter from now on. Investment should increase because there is more political clarity moving out of the second quarter.
I also think exports will improve, for reasons I have written previously.
One reply on “[2707] A quick take on 2Q2013 GDP: it’s all government spending!”
[…] is exactly the reason why I said it was all government spending. You can see how government spending portion suddenly appeared strongly in the second quarter of […]