A corner of Malaysia (Photo: themalaysianreserve) Hanoi (VNA) – The Malaysian economy is forecastto expand by 5.8 percent in 2022, as domestic and external demand recovers, theWorld Bank (WB) said in a report on December 21.
The growth is mainly driven by acceleration in privateconsumption, which is expected to grow at 7.2 percent next year, according tothe latest edition of the WB Malaysia Economic Monitor titled "StayingAfloat", reported Xinhua News Agency.
Exports are projected to continue to expand, albeit at aslower pace of 4.5 percent, in line with the expected moderation in globaltrade growth.
Growth is anticipated to be broad-based, with recoveryacross all economic sectors, said the WB.
The forecast for the year ahead remains clouded by severaldownside risks, including new COVID-19 outbreaks and weaker-than-expectedglobal and regional growth.
The WB also foresees the Malaysian economy to grow at 4.5percent in 2023.
It noted that a resurgence of the pandemic, includingthrough the emergence of new variants, could dampen economic recovery globallyand domestically.
The bank continued that ongoing disruptions to global valuechains could also have a negative impact on Malaysia's trade and manufacturingactivities in the near term.
Given Malaysia's deep integration with internationalfinancial markets, it said a more rapid than expected monetary tightening couldhave negative spillovers in the domestic financial market.
Increased vulnerability among affected households andbusinesses could also constrain growth, it added./.
