Ambank Sees Malaysia's 2022 GDP Growth at 8.5%-9% and 4.5% for 2023

Ambank Research expects Malaysia’s economic growth for 2022 to be at 8.5% to 9% with fourth quarter (4Q22) gross domestic product (GDP) expansion projected to hover at around 6% to 8%.

The research house said in a note on Thursday that growth will be supported mainly by private consumption, external trade and low-base effects.

However, for 2023, it is looking at slower growth of 4.5% as the downside risks become more pronounced.

Malaysia’s GDP registered a stronger growth of 14.2% year-on-year (y-o-y) in 3Q22 compared with 8.9% in 2Q22, the highest growth rate recorded since 2Q21 (15.9% y-o-y).

On the supply side, the services sector increased by 16.7% y-o-y (2Q22: 12%), manufacturing grew 13.2% (2Q22: 9.2%) while mining and quarrying accelerated to 9.2% from a contraction of 0.5% previously.

Exports grew robustly by 23.9% y-o-y (2Q22: 10.4%) supported by strong demand for electrical and electronic (E&E) products while imports increased by 24.4% (2Q22: 14%).

The trade surplus contracted by 32% y-o-y to RM18.09 billion.

Malaysia’s headline inflation in September rose 4.5% on-year against 4.7% in August; on a monthly basis, it moderated to 0.1% month on month.

The unemployment rate recorded a lower rate of 3.6%, declining 0.1% compared with 3.7% in August 2022.

The Industrial Production Index increased by 10.8% in September.

Source: Bernama