Malaysia’s GDP expected to grow 4.2% this year

Malaysia’s gross domestic product (GDP) is set to moderate to 4.2% in 2023 amid external headwinds and tightening of monetary policy in many economies, said the Malaysian Industrial Development Finance Berhad (MIDF) Research.

In a note, the research house said the softer growth is mainly due to the deceleration in external trade performance, considering the anticipated slowdown in global demand.

Due to higher interest rates, pessimistic business sentiment as reflected in S&P Global PMI surveys and elevated inflationary pressures, as well as domestic demand in the United States and European Union, will dampen this year, it said.

MIDF Research said Malaysia’s real exports growth is projected to expand partially supported by improving services exports via tourism activity, noting that China’s earlier-than-expected reopening will provide an extra boost to Malaysia’s services exports as well as tourism activity.

Earlier, Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus announced that Malaysia’s economy recorded a better-than-expected expansion of 5.6% in the first quarter of 2023 driven mainly by private sector expenditure.

She said the growth in 2023 was supported by further expansion of household spending, continued investment activity, improving labour market and higher tourism activities.

Bank Negara Malaysia also announced that the economy is no longer in crisis and continues to gain strength./.

Source: Vietnam News Agency

  • malaysiang

    Related Posts

    7,400 Companies Using E-invoice System; 58 Mln E-invoices Issued As At Oct 14 — MoF

    7,400 Companies Using E-invoice System; 58 Mln E-invoices Issued As At Oct 14 — MoF

    23/10/2024 09:32 AM

    KUALA LUMPUR, A total of 7,400 companies have adopted the e-invoice system, with 58 million e-invoices issued as of Oct 14, 2024, according to t…

    Malaysia’s Energy Transition Development Attracts Interest Of Japanese – Fadillah

    KUALA LUMPUR, The rapid development of Malaysia’s energy transition, especially green and renewable energy and the overall energy market has attracted the interest of the Japan Bank for International Cooperation (JBIC).

    Deputy Prime Minister Datuk Se…