KUALA LUMPUR, Aug 15 — MIDF Research estimated the full quarter gross domestic product (GDP) growth for the second quarter (Q2) 2024 to be around 6.1 per cent year-on-year (y-o-y), supported by robust growth in the services sector.

In a note today, MIDF Amanah Investment Bank Bhd unit said domestic spending stayed robust and domestic demand in Malaysia remains the key driver underpinning stronger growth momentum in Q2 2024.

MIDF Research said consumer spending continued to increase as shown by the more robust rise in retail trade, which grew 7.4 per cent y-o-y in Q2 2024 compared to 5.2 per cent in Q1 2024, the fastest expansion in four quarters.

"Other factors that will push GDP growth above 6 per cent growth y-o-y was the encouraging progress in construction works and stronger output in the manufacturing and mining sectors.

"Export recovery also contributed to the Q2 2024 GDP growth, but we do not expect any big boost from net exports in view of more robust growth in imports,” it said.

MIDF Research opined that the growth momentum will continue in the second half of 2024, backed by the growing domestic economic activities and recovering exports.

"Nevertheless, we are wary of several downside risks to Malaysia’s growth outlook, which could come from possible re-acceleration in inflation and uncertainties from the external front, such as weaker growth in China and the US and further escalation in geopolitical conflicts,” it added. — Bernama