Malaysia is far from going into recession despite 40 percent of the world economies already in stagflation, experts say
New Straits Times reported that MIDF Research projects the Malaysian economy to reach an average of six percent this year. “As long as average headline inflation does not surpass 3.0 percent year-on-year (YoY), we believe domestic spending will stay on an upward trajectory for this year and 2023,” said experts from the firm.
The steady recovery will be backed by strong exports, high commodity costs, and domestic demand as an aftermath of the economy reopening.
Dr. Apurva Sanghi, lead economist for Malaysia at World Bank Group, said that despite numerous global challenges, the Malaysian economy is “doing reasonably well.” He also mentioned that the World Bank expects the country’s economy to go up 5.5 percent this year, which is a huge jump from the projected global growth of 2.9 percent and regional growth of 4.4 percent, according to Malay Mail.
Shan Saeed, global chief economist at Juwai IQI, emphasised that Malaysia is far from going into recession despite two-fifths (or 40 percent) of the world economies are already in stagflation.
He told The Star, the country is currently experiencing positive consumer sentiment and macroeconomic stability, instilling economic confidence in local investors. Global investors looking to invest wherever economic stability exists will be encouraged by this development.
Woon Khai Jhek, senior economist at RAM Rating Services Bhd, also expressed the same sentiment, saying, “Malaysia’s current economic recovery looks to be on a firmer path this year. Domestic demand will be the key economic driver this year, benefiting from robust vaccination and booster coverage, continued improvement in the labour market, and ongoing policy support measures.
For the economy to remain stable and for it to attract investors, however, Datuk K Yogeesvaran, former deputy DG (Macro) of the Economic Planning Unit at the Prime Minister’s Department, noted that political stability is a must, as it guarantees consistent and integrated policymaking, reported The Malaysian Reserve.
The Property Report editors wrote this article. For more information, email: [email protected].
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