An aerial view of Kuala Lumpur (Photo: thestar.com.my)Kuala Lumpur (VNA) – Bank Negara Malaysia(BNM) has said that the country’s economic growth in 2023 normalised to3.7%, below the 4-5% target due to “prolonged weakness” in external demand.
According to the central bank, in the third quarter of2023, gross domestic product (GDP) expanded 3.3%as buoyant domestic spending offset weak external demand. Malaysia's exports,which have been in decline since March, contracted 8% in 2023.
Malaysia's full-year economic growth was expected tocome in at 3.8% in 2023, below the government's projectionof a 4% expansion and a sharp drop from a 22-year high of 8.7% in 2022.
Analysts said Malaysia's growth outlook was anticipated to remaincloudy in coming months, flagging risks including a possiblespike in inflation following plannedsubsidy cuts this year.
The Southeast Asian economy’s growth moderated due toa challenging external environment of slower global trade, geopoliticaltensions, and tighter monetary policies, the bank note.
Moving forward, the BNM said growth in 2024 willbe driven by resilient domestic expenditure and improvement in external demand.
It said the tech upcycle combined with strongerexternal demand and continued improvement in the tourism sector will providesupport to Malaysia's exports.
On the domestic front, the bank said householdspending will be supported by continued employment and wage growth.
Investment activity, meanwhile, will be underpinned byfurther progress of multi-year projects, by both the private and publicsectors, as well as the implementation of catalytic initiatives under thevarious national master plans./.
