Malaysian economy projected to grow 5.8 percent next year: WB

A corner of Malaysia (Photo: themalaysianreserve)

Hanoi (VNA) – The Malaysian economy is forecast to expand by 5.8 percent in 2022, as domestic and external demand recovers, the World Bank (WB) said in a report on December 21.

The growth is mainly driven by acceleration in private consumption, which is expected to grow at 7.2 percent next year, according to the latest edition of the WB Malaysia Economic Monitor titled "Staying Afloat", reported Xinhua News Agency.

Exports are projected to continue to expand, albeit at a slower pace of 4.5 percent, in line with the expected moderation in global trade growth.

Growth is anticipated to be broad-based, with recovery across all economic sectors, said the WB.

The forecast for the year ahead remains clouded by several downside risks, including new COVID-19 outbreaks and weaker-than-expected global and regional growth.

The WB also foresees the Malaysian economy to grow at 4.5 percent in 2023.

It noted that a resurgence of the pandemic, including through the emergence of new variants, could dampen economic recovery globally and domestically.

The bank continued that ongoing disruptions to global value chains could also have a negative impact on Malaysia's trade and manufacturing activities in the near term.

Given Malaysia's deep integration with international financial markets, it said a more rapid than expected monetary tightening could have negative spillovers in the domestic financial market.

Increased vulnerability among affected households and businesses could also constrain growth, it added./.