Malaysia's economic growth slowed to 5.1 per cent in 2011 as the country struggled with global economic uncertainties, the central bank said today.

The growth rate was down 7.2 per cent in 2010.

Bank Negara Malaysia said the economy expanded by 5.2 per cent in the fourth quarter due to increased domestic demand.

"The favourable domestic demand conditions were supported by both private and public sector spending," it said.

It noted that private consumption increased by 7.1 per cent from a year ago while public consumption expanded by 23.6 per cent.

The bank said that domestic demand will remain the key driver of growth for the next year, backed by strong public sector expenditure.

"Going forward, the more challenging external environment could present greater downside risks to Malaysia's growth prospects," it  said, noting the uncertainty of the European sovereign debt crisis.

"Nevertheless, domestic demand is expected to continue to be the key driver of growth, supported primarily by the continued expansion  of private sector activity," it added.

- dpa