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World Bank keeps Malaysia’s economic growth forecast at 5.5%

It also projects that Malaysia's economy will grow at 4.5% in 2023 and 4.4% in 2024.

Bernama
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Traffic builds up at the intersection of Jalan Sultan Ismail and Jalan Bukit Bintang in Kuala Lumpur.
Traffic builds up at the intersection of Jalan Sultan Ismail and Jalan Bukit Bintang in Kuala Lumpur.

The World Bank on Monday maintained Malaysia’s economic growth forecast this year at 5.5%, driven mainly by a robust rebound in consumption demand.

According to the Washington-based bank, Malaysia’s private consumption growth is forecast to reach 8.5% this year – its fastest pace since 2008, Xinhua reported.

The strong recovery in household spending is premised on a further dissipation of public health concerns in the absence of a severe resurgence of Covid-19 caseloads, as well as continued policy support and gradual improvements to employment and income prospects, it added.

The World Bank also projected that Malaysia’s economy would grow at 4.5% in 2023 and 4.4% in 2024.

The Malaysian economy contracted by 5.6% in 2020 but grew at 3.1% last year on the back of a strong vaccination programme and the easing of mobility barriers.

The economy continued to recover this year, expanding by a healthy 5% in the first quarter of 2022.

The growth was largely driven by an increase in domestic demand following the resumption of most economic activity as pandemic-related containment measures were further eased.

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