Malaysia’s 2022 GDP growth highest in ASEAN: Bank Islam Malaysia Bhd

Part of Kuala Lumpur capital of Malayssia (Source: themalaysianreserve)

Kuala Lumpur (VNA) – The Bank Islam Malaysia Bhd on February 9 stated that Malaysia’s gross domestic product (GDP) growth is projected to hit 8.4% in 2022 compared with 3.1% in 2021, marking the highest among ASEAN countries.

The bank also projects the country’s GDP growth for the fourth quarter of last year to reach 5.7%.

The bank’s chief economist Firdaos Rosli said the better-than-expected results are thanks to the continued expansion in domestic demand and a firmer recovery in the labour market, aside from the low-base effect factor.

Furthermore, the ringgit reached an historic high of 4.746 MYR (against the US dollar) in early November 2022, pressured by the widening interest rates and bond yield differentials.

Firdaos said although the Malaysian economy will continue to expand in 2023 amid a global slowdown, a recession will be less probable to occur as the country’s macroeconomic fundamentals remain solid.

He said that private consumption will continue to be the primary driver of economic growth throughout the year.

China’s reopening prospects can help limit the decline, he added.

The bank projects the Malaysian economy to grow by 4.5% in 2023 sans the impact of China’s economic reopening and subsidy rationalisation.

The latest multilateral development banks’ (forecasts) project Malaysia to grow between 4% and 4.4% in 2023.

Meanwhile, Maybank Investment Bank Bhd estimates real GDP to grow at 6% in the fourth quarter of 2022, with full-year 2022 growth at 8.5% but will decelerate to 4% this year.

Hong Leong Investment Bank Bhd (HLIB) has revised Malaysia's GDP growth estimate for the fourth quarter of 2022 upward to 6.8% from its preliminary estimate of 5.5%./.