KUALA LUMPUR, Nov 13 ― Malaysia's economy likely slowed in the third quarter as export growth dropped significantly from the first half of the year due to worsening global economic conditions while private consumption also cooled.

Economists polled by Reuters expect gross domestic product to rise 5.6 per cent in the third quarter from a year earlier, down from 6.4 per cent in the second quarter.

But the overall economy is likely to expand at 5.8 per cent in 2014, according to the poll, higher than previously expected after the economy grew a solid 6.3 per cent in the first half. The economy had grown 4.7 per cent in 2013.

“It is unlikely that we would get a 6 per cent growth in the second half,” said Weilian Wiranto, an economist with OCBC in Singapore.

“Obviously, lower exports owing to less gung-ho global demand has not helped,” Wiranto said, adding that Malaysia would likely see “further slowdown in the economy”.

While exports growth stayed positive, exports of electronics weakened, and falling world oil prices have dampened earnings from crude oil, liquefied natural gas and refined petroleum product exports.

Factory output grew 5.4 per cent year-on-year in September, lower than August's 6.5 per cent growth, despite expectations that seasonal year-end demand would increase production.

Bank Negara Malaysia held interest rates steady last week, as concerns over the global economy has made the central bank cautious about ordering an increase. ― Reuters