This is also a sharp drop from the 22-year high of 8.7% growth recorded in 2022.

The economy saw a 3% growth in the fourth quarter of 2023 (Q4 2023) compared with the same period the year before.

The reading was below advanced estimates released on Jan 19 by the statistics department and analysts’ forecast in a Reuters poll of a 3.4% expansion.

This was also slower than the previous quarter, the central bank said.

BNM said growth in the October-December period was driven by improving labour market conditions and easing cost pressures.

“Growth in investment activity was underpinned by the progressive realisation of multi-year projects and capacity expansion by firms,” BNM said in a statement.

The government and central bank expect economic growth of 4%-5% in 2024.