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Malaysia's economy grows 4.0 pct on-year in Q2 as slowdown drags on

Charles Pertwee | Bloomberg | Getty Images

Malaysia's economy expanded 4.0 percent in the second quarter, the slowest pace in nearly seven years, as exports and domestic investments were weak.

The growth was in line with a Reuters poll that forecast 4.0 percent annual growth in April-June. The economy grew 4.2 percent in January-March.

The second quarter was the fifth in a row in which Malaysia's growth rate declined.

Malaysia's central bank said in its growth rate announcement on Friday that the current account surplus narrowed to 1.9 billion ringgit over the April-June period, from the 5 billion ringgit in the previous quarter.

In January, the government revised its 2016 growth projection to 4.0-4.5 percent from 4.0-5.0 percent.

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