KUALA LUMPUR: Malaysia's economic growth is estimated to have grown 4.4% in the first quarter in 2025, with growth moderating for a third straight quarter amid persistent global headwinds, according to the National Statistics Department.
The advance gross domestic product (GDP) estimates issued today showed the country's economic growth slowing from a 5% expansion in the final quarter of 2024.
According to the projection, the services sector remained the primary driver of quarterly economic growth with a 5.2% expansion.
The manufacturing sector recorded 4.2% quarterly growth, on the back of strong output in the electrical, electronic and optical products as well as the vegetable and animal oils and fats and food processing.
In other sectors, construction registered double-digit growth of 14.5% and the agricultural sectors expanded marginally at 0.7%. In contrast, the mining and quarrying sector showed a contraction of negative-4.9% on lower production across the sub-sectors.
Chief statistician Datuk Sri Mohd Uzir Mahidin said seasonal events such as Chinese New Year celebrations, preparations for Ramadan and the reopening of the school year helped keep overall economic activities on a positive track.
"These factors contributed to a stronger performance in distributive trade sales, which rose by 5.1% in February as compared to 4.6 per cent in the previous month, mainly supported by strong performances in both retail and wholesale trade."
Mohd Uzir noted that the labour market remained favourable, marked by a continued rise in employment and a stable unemployment rate of 3.1%.
Meanwhile, the latest indicators showed there was improved global demand for key export goods, which helped to sustain trade activity on the external front.
"Collectively, these domestic and external components helped buffer the economy against global challenges, supporting overall growth during the quarter," he said.
The release of preliminary GDP data, which provides a detailed and comprehensive analysis of economic performance in the first quarter of 2025, is scheduled for May 16, 2025.
