2-10-2023 (KUALA LUMPUR) The World Bank has revised down Malaysia’s economic growth forecast for 2023, lowering it to 3.9 percent from the previous projection of 4.3 percent.
In a statement, the World Bank highlighted that the anticipated growth rate for 2023 represents a significant slowdown compared to the robust 8.7 percent growth projected for 2022. This deceleration is primarily attributed to a substantial decline in external demand.
However, the World Bank also noted that domestic demand is expected to remain resilient and continue to support the economy. The main driver of growth is projected to be domestic private sector spending, which will be bolstered by improvements in labor market conditions. Additionally, the government’s ongoing household income support initiatives are set to contribute to the sustained momentum.
On the other hand, the World Bank expects Malaysia’s gross exports to contract by 5.8 percent in 2023, contrasting sharply with the 14.5 percent growth recorded in 2022. This downward trend is attributed to subdued global growth prospects and a weakening international trade momentum.
