International News 20/08
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Malaysia's Economy Grows 5.9% y/y in Q2 2024, Slightly Above Estimates
Malaysia's economy performed above expectations, with a 5.9% growth rate in the second quarter of 2024 compared to the same period last year. This growth rate exceeded the market forecast of 5.8% and the government's preliminary estimates. The central bank and Department of Statistics attributed this expansion to stronger household spending, positive labour market conditions, increased exports and increased investment activity. Consequently, it is projected that Malaysia's economic growth for the year will be at the upper end of the central bank's forecast of 4% to 5%. In a statement, BNM Governor Abdul Rasheed Ghaffour asserted that household spending will remain a key driver of growth, bolstered by gains in employment and income, policy support, and robust investment activity. In 2023, Malaysia's economy expanded by 3.7%, a notable decline from the 22-year high of 8.7% recorded in 2022. Meanwhile, export growth rates in the first half of 2024 have shown a degree of variation.
Japan's economy rebounds strongly in the second quarter due to increased consumption
Japan's economy demonstrated a stronger performance than anticipated in the second quarter of 2024, with an annualised rate of 3.1%. This growth was primarily driven by a solid increase in consumption, which had previously been a weak point in the economy due to rising living costs and higher import prices caused by a weak yen. Private consumption, which accounts for over half of economic output, increased by 1.0%, marking the first rise in five quarters. In addition, capital expenditure, a significant contributor to private demand-led growth, demonstrated a 0.9% increase. Despite concerns over external demand, with exports minus imports reducing growth, the overall data supports the Bank of Japan's forecast of a sustained economic recovery and achieving its 2% inflation target. This positive performance may justify further interest rate increases in the future.
US crude oil reserves rise, while fuel oil stocks fall
The Energy Information Administration (EIA) has announced that US crude oil reserves increased by 1.36 million barrels in the week ending 9 August, reaching a total of 430.7 million barrels. This increase was below the 2.2 million barrel build that was predicted in a Reuters poll. However, the EIA also reported a decrease of 1.7 million barrels in stocks at the Cushing, Oklahoma delivery centre. Refinery crude oil output also increased by 65,000 barrels per day, while the refinery utilisation rate rose by 1 percentage point to 91.5%. Conversely, US gasoline stocks declined by 2.9 million barrels to 222.2 million barrels, in contrast to an anticipated draw of 1.3 million barrels. Additionally, refined oil stocks, comprising diesel and heating oil, fell by 1.7 million barrels to 126.1 million barrels, exceeding expectations for a 0.52 million barrel draw.