Malaysia’s Economic Growth Forecast Stays at 5.5% by World Bank

Malaysia’s Economic Growth Forecast Stays at 5.5% by World Bank

5.5% will remain Malaysia’s economic growth forecast for 2022, according to the World Bank. This is thanks to the strong rebound where consumer demand is concerned.

Private consumption growth for Malaysia’s economic growth is predicted to hit 8.5% in 2022. This is the fastest pace that the economy has grown since 2008.

 

Factors That Contribute to Malaysia’s Economic Recovery

Now that fears have alleviated over Covid-19 cases, household spending saw a strong recovery. Continuous support for policies and the steady improvements the country has been seeing in income prospects and employment are also a contributing factor.

It is anticipated that Malaysia’s economic growth for 2023 will be 4.5% and 4.4% in 2024. Despite seeing a contraction of 5.6% in 2020, the setback didn’t last long. The mandate to expedite Covid-19 vaccinations was a big help in giving the economy a boost again.

Economic recovery continues to progress this year. In the first quarter, the economy expanded by 5%. An increase in domestic demand was the main driving force behind this growth. In addition, the easing of the Covid-19 containment measures was also a big help.

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