Skip to content

Malaysia expects GDP to remain at 4.3% in 2023

Kuala Lumpur :also noted that bond demand is expected to improve going forward, partly due to political developments, but mainly due to market expectations that the Fed will not be as tough,

leading to lower global bond yields.

In addition, Malaysia’s gross domestic product (GDP) growth forecast is expected to remain unchanged due to resilient domestic demand, aided by various policy support and increased tourist arrivals.

The GDP forecast for 2023 is also maintained at 4.3% amid slowing global growth and normalization of economic activity in the post-pandemic period

The firm also noted that the Bank may raise the overnight policy rate by another 25 basis points in January 2023, as reflected in the latest core inflation data, due to better-than-expected GDP

growth and higher inflation in the second half of the year.

The coalition government is expected to continue its expansionary fiscal policy in the 2023 budget, including possible continuation of populist measures such as a comprehensive fuel subsidy

program, while also undertaking various development projects to support the domestic economy from a potential growth slowdown.

The Bank is expected to halt the interest rate hike cycle if domestic demand slows due to rising external risks.

However, I think on the other hand, the broad and diversified domestic economy actually provides a solid foundation for continued growth.
Thus, private consumption will continue to be the main pillar driving Malaysia’s economic growth and will recover further once the labor market also starts to improve.

Published inInvestment Information

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to toolbar