Malaysia is unlikely to enter a recession this year. According to Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus, as strong domestic demand and expenditure are expected to continue anchoring growth.
The most recent official gross domestic product (GDP) predictions, she added, would not be made public. Until the new Budget 2023, which would be presented on February 24.
According to her, the first quarter of 2023’s performance is currently exhibiting more robust. Growth than the 6.0% observed in the fourth quarter of 2022.
“We do anticipate that growth will continue in 2023, albeit with significantly reduced foreign demand.
During a news briefing on the fourth quarter (4Q) and 2022 GDP statistics issued today, she said. “The essential thing I want to emphasize is that we are seeing continuous progress in the job market. And we are going to benefit from the beneficial impact from China’s reopening.”
The administration also emphasized that a reduction in exports that would result from a slower global economic demand can be countered by robust investment figures. And a V-shaped recovery in tourism activities.
Global economic growth is anticipated concurrently. She continued, noting that the International Monetary Fund (IMF) has also raised its GDP projections for this year and 2022.
Global GDP remained weak in the fourth quarter of 2022 despite increased interest rates and reduced trade activity. Spending and production activities were also affected by the severe COVID-19 comeback in China.
In 2022, Malaysia’s economic growth increased to 8.7%. A 22-year record high, from 3.1% the year before thanks to strong development across all sectors.
However, the GDP figure shrank by 2.6% in the fourth quarter compared to the third quarter of 2022.
According to Statistics Department Malaysia’s chief statistician, Datuk Seri Dr. Mohd Uzir Mahidin. “The deceleration from the high growth in 3Q reflects decreasing support from stimulus measures.”
Although the economy in 2022 has grown beyond the pre-pandemic level of 2019. According to Mohd Uzir, three major economic sectors mining and quarrying, construction, and agriculture remain below the pre-pandemic level.
‘’ 2.8 million people were employed in these three areas in 2021, which was still 0.1 million fewer than pre-pandemic figures.
“Despite the fact that the total services sector has improved from 2019. He noted that food and beverage, lodging, real estate, business services, private education, and other services activities were remained below pre-pandemic levels.
The amount spent on inbound travel increased to RM27.9 billion in 2022 from RM0.3 billion the year before.
However, with 26.1 million tourists arriving, inbound traffic is still below pre-pandemic levels.
“Comparatively, outbound travel expenses increased to RM29.6 billion. Which is more than half of the RM51.3 billion totaled at the level prior to the pandemic, he pointed out.