Malaysia’s economy to grow 4.5% in 2023: IMF

Illustrative image. (Photo: AFP/VNA)

Kuala Lumpur (VNA) - The Malaysian economy is expected to grow by 4.5% in 2023, said the International Monetary Fund (IMF).

Inflation is projected to remain elevated at 3.3% this year, with likely persistence in core inflation, amid evidence of a build-up of demand-side pressures, according to IMF’s report released on June 1.

Malaysia's economic growth recovered strongly from the pandemic in 2022, after reaching a modest level in 2021, thanks to pent-up domestic demand and strong export performance, it said.

External risks include the risk of a sudden downturn in the global economy. Geo-economic fragmentation and geopolitical tensions leading to trade restructuring, supply disruptions, and increased input costs could negatively affect Malaysia's growth prospects.

The IMF called on the Bank of Malaysia to further tighten monetary policy, which it said will help ensure inflation expectations remain well-anchored.

The IMF welcomes the administration's plans under the 12th Malaysia Plan which aims to strengthen economic resilience, move towards net-zero greenhouse gas emissions and promote inclusive growth ./.