(Bloomberg) — Malaysia’s economy returned to contraction in the third quarter, the first Southeast Asian economy to report a renewed slump, amid a protracted lockdown and a spike in Covid cases.
Gross domestic product in the three months ended September shrank 4.5% from a year earlier, Malaysia’s central bank said Friday, worse than the 2.6% drop predicted by analysts in a Bloomberg survey. Compared to the previous three months, GDP fell 3.6% on a seasonally adjusted basis.
The slowdown was seen across all segments of the economy, Nor Shamsiah Yunus, governor of Bank Negara Malaysia, said in a virtual briefing, adding that monetary policy will remain accommodative to provide support and ensure price pressures are manageable.
Despite last quarter’s slump, the central bank reaffirmed the government’s outlook for economic growth this year at 3%-4%, with headline inflation at 2%-3%. It also reiterated the official 2022 outlook for GDP to expand 5.5%-6.5%.
“Progressive lifting of containment measures and continued improvements in the labor market will be key to support the recovery going forward,” Shamsiah said, adding that growth will improve in the fourth quarter.
The outlook comes days after Malaysia opened a vaccinated travel lane with Singapore, its first such initiative, and agreed to begin a travel corridor with Indonesia early next year. Malaysia’s rapidly widening vaccine coverage has allowed the local economy to reopen in recent months, with all but two states in the final phase of the government’s national recovery plan.
The nation is also set to reopen the tourist haven of Langkawi islands to overseas visitors on Monday under a pilot project. The government will evaluate the project before emulating it in other tourist spots in the country, Prime Minister Ismail Sabri Yaakob said last month.
The government in October unveiled a record $80 billion spending plan for next year as it seeks to spur the long-delayed economic rebound, and allocated 23 billion ringgit for Covid stimulus measures alone.
The central bank last week maintained its benchmark policy rate at a record low of 1.75%, supporting a nascent economic recovery as virus curbs ease and inflation remains under control. Headline inflation is likely to remain moderate next year, Shamsiah said Friday, reiterating the bank’s comments last week, and added that the bank will be mindful of any premature withdrawal of monetary support.
Risks remain for the government’s growth outlook. Two upcoming state elections in Malacca and Sarawak could undo the recent drop in new Covid infections to the fewest since early June. The reproduction factor of the virus, known as R-naught, has climbed back to the key threshold of 1, and the government is monitoring hospital admissions and other leading indicators, Health Minister Khairy Jamaluddin said in a tweet on Friday.
The health ministry has issued fines as campaigning politicians violated virus protocols ahead of voting day on Nov. 20. A spike in cases after an election in Sabah state last year fueled public anger against former premier Muhyiddin Yassin, helping to precipitate the fall of his government in August.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
