KUALA LUMPUR, April 4 — The Asian Development Bank (ADB) today projected Malaysia’s economy to grow at 4.7 per cent in 2023, and 4.9 per cent in 2024, reported Xinhua.
The ADB said in its latest Asian Development Outlook report 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 United States 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 per cent 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 per cent year on year in the fourth quarter of last year to round off 2022 with an 8.7 per cent growth, significantly higher than 3.1 per cent in 2021.
The robust growth was driven mainly by strong domestic consumption as markets normalised and labour market conditions improved. — Bernama
