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.