Research firm upgrades forecast for Malaysia’s retail trade growth

A money exchange counter in Malaysia (Photo: AFP/VNA)

Kuala Lumpur (VNA) – MIDF Research has revised its retail trade growth forecast for Malaysia this year to 17.6%, up from the previous prediction of 10.5%, on the expectation of stronger GDP growth in the second quarter.

The research firm said Malaysia’s consumer spending is expanding strongly as reflected in the retail trade sales growth of 19.1% year on year in the first half of 2022.

Distributive trade sales in June rose 44% from the same period last year, the fastest pace in 14 months. It grew 26.3% year on year in Q2, compared to 8.6% in Q1.

MIDF Research noted domestic demand continued to stay on an uptrend contributed by improving labour market, stable inflationary pressure, and further revival of the domestic economy, including international borders reopening and special Employees Provident Fund withdrawals in April 2022.

“Looking ahead, the upbeat momentum of domestic demand is set to continue in the second half of the year, particularly driven by stable overall price growth and lower unemployment rate,” it said.

It believed the pent-up demand will continue until the end of this year, underpinned by an improving labour market, stable inflationary pressure and the continued reopening of the domestic economy./.

VNA