KUALA LUMPUR – The government’s final consumption expenditure further expanded to 9% in the second quarter of 2021 (Q2 2021), supported by higher spending on supplies and services attributed to health-related expenditures.
In the first quarter, the government’s final consumption expenditure grew 5.9%, according to the Statistics Department.
Chief statistician Datuk Seri Mohd Uzir Mahidin said the private final consumption expenditure, which contributed 55% of gross domestic product (GDP) in Q2 2021, increased 11.6% (Q1 2021: -1.5%) due to the higher consumption in transport, food and non-alcoholic beverages, and communication.
“The exceptionally higher consumption in transport was attributed to the higher purchase of motor vehicles in the first two months of the quarter by households compared with the same period of last year.
“Furthermore, furnishing, household equipment, and routine household maintenance as well as restaurants and hotels, which were non-essential expenditure, also registered positive growth during the quarter,” he noted.
On a quarter-on-quarter basis, the overall performance of private final consumption expenditure fell 11.5%. – Bernama, August 13, 2021
