KUALA LUMPUR: The Malaysian economy grew by 16.1 per cent in the second quarter (Q2 2021) compared with -0.5 per cent in the first quarter of the year, supported mainly by the improvement in domestic demand and continued robust exports performance, said Bank Negara Malaysia today.

The central bank said the strong growth also reflected the low base from the significant decline in activity during the second quarter of 2020.

"While the containment measures weighed on growth, greater adaptability to restrictions and ongoing policy support have partly mitigated the impact," governor Datuk Nor Shamsiah Mohd Yunus said in a statement today.

In the second quarter, economic activity picked up at the start of the second quarter, but slowed down thereafter, following the re-imposition of stricter containment measures nationwide under phase one of the full movement control order, while all economic sectors registered an improvement, particularly the manufacturing sector.

On the expenditure side, growth was driven by higher private sector spending and strong trade activity.

On a quarter-on-quarter seasonally-adjusted basis, the economy registered a decline of 2.0 per cent against 2.7 per cent in the first quarter this year, weighed by the tighter containment measures.

-- BERNAMA