KUALA LUMPUR: Malaysian imports fell by the most since 2009 in August as demand for capital goods waned, suggesting the nation’s economic growth will cool in the months ahead.
Imports slid 12.5% in August from a year ago, trailing the 8% drop forecast by economists in a Bloomberg survey, according to official data released Friday.
Exports shrank 0.8%, missing analysts’ estimates for a 2.7% gain.
The data could signal that the US-China trade war is taking a mounting toll on Malaysia’s economy.
Second-quarter growth accelerated to 4.9% from a year earlier, the quickest pace in more than a year, but economists have warned that rising global risks will weigh on exports and consumption for the rest of the year.
The following are the key insights of the survey:
- Imports of capital goods, a barometer of economic activity, slumped 31% in August due to lower purchases of machinery parts and mechanical appliances. Imports of consumption goods fell 12.8%.
- Agriculture exports climbed 13%, led by palm oil, as China doubled its purchases of the commodity.
- Malaysia is expected to unveil an expansionary budget on Oct 11 to counter the fallout from the trade war, with growth forecast to slow to 4.3% in 2020 from a projected 4.5% this year.