Malaysia's economy grows 4% y-o-y in Q2 as slowdown drags on

[KUALA LUMPUR] Malaysia's economy expanded 4 per cent in the second quarter, the slowest pace in nearly seven years, as exports and domestic investments were weak.

The growth was in line with a Reuters poll that forecast 4 per cent annual growth in April-June. The economy grew 4.2 per cent in January-March.

The second quarter was the fifth in a row in which Malaysia's growth rate declined.

Malaysia's central bank said in its growth rate announcement on Friday that the current account surplus narrowed to RM1.9 billion (S$640 million) over the April-June period, from the RM5 billion in the previous quarter.

In January, the government revised its 2016 growth projection to 4.0-4.5 per cent from 4.0-5.0 per cent.

REUTERS