People buy chicken meat at a market in Kuala Lumpur, Malaysia, on September 1, 2021. (File photo: AFP/VNA) Many major banks of Malaysia forecast that the country's economy will grow around 4% this year.
Hong Leong Investment Bank Research said in a note that in view of the external headwinds and diminishing base effect, it maintained its expectation for Malaysia to grow at a more moderate pace of 4 % this year.
China's reopening is anticipated to help push Malaysia’s recovery in tourist arrivals and lend some support to export growth. Domestic demand is also expected to continue to assist growth, albeit at a more moderate pace, amid the continued gradual recovery in the labour market.
As for the Maybank Investment Bank, Malaysia's slower growth outlook primarily reflects the effects of the high inflation and high interest rate on consumer spending and global economic downturn on external trade.
Public Investment Bank Research also maintained Malaysia's GDP growth projection of 3.8% as it sees that external risks have clearly risen following concerns on a global economic slowdown./.
VNA
