KUALA LUMPUR, Nov 16 — The Malaysian economy grew by 4.4 per cent in the third quarter, according to Bank Negara Malaysia.

BNM governor Datuk Nor Shamsiah Mohd Yunus said the private sector continued to be the prime driver of growth as private consumption expanded strongly following the zero-rating of the Goods and Services Tax (GST) during the period.

"The Malaysian economy is on track to achieve GDP growth of 4.8 per cent for 2018,” said Nor Shamsiah during the 3rd quarter GDP presentation here today.

On a quarter-on-quarter seasonally adjusted basis, the economy grew by 1.6 per cent which was faster than the 0.3 per cent growth in the previous quarter.

Meanwhile headline inflation declined to 0.5 per cent during the third quarter of 2018 mainly imputing the impact from the GST zerorisation.

The implementation of the Sales and Services Tax (SST) on September 1 had a muted impact on inflation during the quarter.

Inflation is expected to remain benign for the rest of 2018 mainly reflecting the impact from GST zerorisation and the stable domestic fuel prices.

Headline inflation is forecasted to inch up due to higher global oil prices and prospective floating of fuel prices.

"Going forward, BNM projects the GDP growth in 2019 to be in the region of 4.9 per cent,” added Nor Shamsiah.

Private sector activity is expected to remain the key driver of growth amid the reprioritisation of public expenditure. The anticipated gradual recovery in commodity prices will also lend credence to the projected growth.