Hanoi (VNA) – Malaysia will not face an economic recessionthis year as the country recorded an impressive 5.6% gross domestic product(GDP) growth in the first quarter of 2023, according to the country's central bank governorTan Sri Nor Shamsiah Mohd Yunus.
Mohd Uzir Mahidin, director of the Department of StatisticsMalaysia, attributed the positive economic growth in the first quarter of thisyear to an improvement in household spending, direct investment, the labourmarket, and tourism. Specifically, the service industry grew by 7.3% in the periodwhile the manufacturing, construction and agricultural sectors rose by 3.2%, 7.4% and 0.9%, respectively.
Malaysia recorded 12 billion RM (2.6 billion USD) in foreign direct investment (FDI) at the endof the first quarter. This investment was mainly in the financial, mining, andmanufacturing sectors.
Inflation is forecast to remain high at 2.8-3.8% this year. Itstood at 3.9% in the first quarter of this year, showing that even when costshave been reduced, vibrant economic activity still creates pressure that spursconsumer demand and causes inflation to soar.
Despite the challenges that the economy is facing, Shamisahaffirmed that the Malaysian economy is on track to achieve GDP growth of 4-5%thanks positive signal of domestic demand, adding that the risk of highinflation mainly comes from domestic factors such as tourism activities and theimplementation of large infrastructure construction projects.
Malaysia’s Finance Minister Datuk Seri Anwar Ibrahim agreed,saying that to this end, the government will prioritise solving the economic challengesthat Malaysians have to deal with, especially combating wastefulness andcorruption./.
