Economics

Strong Consumer Spending Spurs Malaysia's Growth to 1-Year High

  • Economic expansion slowed to 4.2% in 2016 from 5% in 2015
  • Recovery in commodity prices strengthens the growth outlook
Photographer: Goh Seng Chong/Bloomberg
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Malaysia’s economy grew at the fastest pace in a year last quarter, as stronger consumer spending and an export recovery helped counter falling government expenditure.

Malaysia’s economy has come under pressure in recent years as lower commodity prices and a slump in global demand hurt exports and crimped revenue. Domestic consumption has been a key growth driver and the central bank has kept interest ratesBloomberg Terminal low to help support spending.