KUALA LUMPUR, Nov 15 — Malaysia’s economy grew 5 per cent year-on-year in the third quarter of 2013 and rose strongly from 4.4 per cent the previous quarter owing to a recovery in exports.

Bank Negara Malaysia (BNM) also announced today that quarter-on-quarter, the gross domestic product (GDP) has grown by 1.7 per cent compared to the previous quarter’s 1.4 per cent expansion.

BNM also maintained its outlook for this year’s GDP growth at between 4.5 to 5 per cent.

“The country registered a better economic performance during the third quarter due to improved external demands and continued strength in domestic demand supported the overall growth,” BNM Governor Tan Sri Zeti Akhtar Aziz told a press conference here.

The inflation rate has also increased to 2.2 per cent, the highest since the fourth quarter of last year, due to higher inflation in transport and food.

This follows subsidy cuts in RON95 petrol and diesel by 20 sen per litre in September, which caused inflation that month to rise to 2.6 per cent, the highest yet in 2013.

However, household debt has moderated slightly to 2.5 per cent, compared to 3.2 per cent in the second quarter of 2013.

The GDP growth rate announced today surpassed the median forecast of a Reuters poll of 4.8 per cent, in which the forecasts had ranged from 3.6 to 5.3 per cent.

Exports have grown every month in the third quarter this year, and rose 5.6 per cent in September, boosted by Southeast Asian demand for refined petroleum products and higher electronics.

September’s trade surplus was the biggest since November 2012, ending a seven consecutive quarters in export shrinkage.

Domestic demand has also increased to 8.3 per cent versus a dip last quarter, as most economic sectors recorded a higher growth.

Mining, however, fell to just 1.7 per cent from 4.1 per cent, due to marginal contraction in crude oil output.

Private consumption expanded by 8.2 per cent, supported by a higher wage growth in both export and domestic-oriented industries, but mostly contributed by the latter.

Private and public investments have also expanded thanks to spending in the oil and gas sector for both.