ADB sees Malaysia’s economy growing 4.7% in 2023, 4.9% in 2024
Asian Development Bank expects Malaysia’s economic growth to moderate this year and in 2024.
PETALING JAYA: The Asian Development Bank (ADB) has projected Malaysia’s economy to grow at 4.7% in 2023, and 4.9% in 2024, reported Xinhua.
The ADB said in its latest Asian Development Outlook report today that Malaysia’s economic performance in 2023 will depend on factors such as spillover from China’s reopening, government policy support, and developments in the electronics industry.
It also noted that the global economic slowdown, persistent inflation, and continuing rate hikes by the US Federal Reserve diminish prospects for the year.
On the upside, it said impacts from such downside risks can be countered by stronger growth in the reopened China, recovery in tourism, and continued government support to boost domestic consumption and tame inflation.
The ADB also said that private consumption is anticipated to remain the primary driver of growth for Malaysia, increasing by an average of 5.6% in 2023 and 2024.
According to the ADB, Malaysia’s growth exceeded expectations in 2022, buoyed by strong domestic consumption and a rebound in services as borders reopened and economic activity normalised.
“Growth is expected to moderate, and inflation to decelerate in 2023 and 2024, mainly tracking changes in the global environment,” said the ADB.
Malaysia grew by 7% year-on-year in the fourth quarter of last year to round off 2022 with an 8.7% growth, significantly higher than the 3.1% in 2021.
The robust growth was driven mainly by strong domestic consumption as markets normalised and labour market conditions improved.
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