Malaysia’s gross domestic product (GDP) is set to moderate to 4.2% in 2023 amid external headwinds and tightening of monetary policy in many economies. (Photo: AFP) In a note, the research house said the softer growth is mainly due to the deceleration in external trade performance, considering the anticipated slowdown in global demand.
Due to higher interest rates, pessimistic business sentiment as reflected in S&P Global PMI surveys and elevated inflationary pressures, as well as domestic demand in the United States and European Union, will dampen this year, it said.
MIDF Research said Malaysia’s real exports growth is projected to expand partially supported by improving services exports via tourism activity, noting that China's earlier-than-expected reopening will provide an extra boost to Malaysia’s services exports as well as tourism activity.
Earlier, Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus announced that Malaysia’s economy recorded a better-than-expected expansion of 5.6% in the first quarter of 2023 driven mainly by private sector expenditure.
She said the growth in 2023 was supported by further expansion of household spending, continued investment activity, improving labour market and higher tourism activities.
Bank Negara Malaysia also announced that the economy is no longer in crisis and continues to gain strength./.
VNA
