Malaysia's economy grew at a better-than-expected 5.6 per cent in the first quarter from a year earlier, the highest in two years as private expenditure and exports drove recovery, central bank data showed on Friday.

Growth was well above the median forecast of 4.8 per cent in a Reuters poll. Annual expansion was 4.5 per cent in the final quarter of 2016.

Bank Negara Malaysia (BNM) also said that the current account surplus narrowed to 5.3 billion ringgit ($1.2 billion) in the first quarter, from 12.5 billion ringgit in October-December.