Economists forecast GDP for this year to be between 4 and 5 per cent, but said growth could be further impacted if headwinds worsened.
Not only will these challenges affect domestic demand, the key driver of the Malaysian economy, but can also affect the country’s exports and business sentiments overall, they say.
Malaysia went into a technical recession in the third quarter of 2021 due to the Covid-19 lockdowns. Technical recession is when there are two successive quarters of economic contraction.Economists at this stage are forecasting gross domestic product for this year to be between 4% and 5%, similar to Bank Negara’s official estimate, but said growth could be further impacted if headwinds worsened.
OCBC Bank chief economist Selena Ling told StarBiz that while the local economy is likely to be relatively resilient, it is not completely immune to the global headwinds, given its open economy and reliance on commodities and manufacturing, especially electronics. “The need to pursue a gradual fiscal consolidation strategy to reduce fiscal risks and put its debt on a downward path may also mean a more limited fiscal space to counter any economic shocks,” Ling said.
“Meanwhile, high global inflationary pressures typically result in a steep rise in input costs and imported goods in Malaysia. Other challenges to the domestic growth outlook include unresolved labour shortage issues and geopolitical risks, Nadia said.Given the dependency on foreign workers in sectors such as construction and plantations, growth may come in lower than expected if this issue prolongs, Nadia added.
“I suppose businesses are being cautious at the moment. This will have an impact on how they will plan for their labour hiring and capital expenditure,” he said. RAM’s Nadia projects economic growth to come in between 4% and 5% this year. Domestic demand will continue to play a key role for growth this year, underpinned by the ongoing recovery in the labour market.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Exciting new beginning for Malaysia': China commits RM170bil in investments, Anwar saysPETALING JAYA: China has agreed to invest RM170 billion in Malaysia, says Prime Minister Anwar Ibrahim.
Read more »
Birthday boy Justin looking forward to playing in higher ranked tourneysPETALING JAYA: Justin Hoh is reaping the fruits of his persistence and hard work.
Read more »
Yakult anjur Bengkel Lompat TaliSelain di Spacerubix Puchong, Bengkel Lompat Tali juga akan dianjurkan di The TOP, Pulau Pinang pada 8 April ini dengan objektif meningkatkan kesedaran kepentingan bersukan sempena Hari Kesihatan Sedunia yang akan disambut pada 7 April setiap tahun.
Read more »
Malaysia raih RM170 bilion pelaburan dari ChinaPETALING JAYA: Malaysia meraih pulangan pelaburan sebanyak RM170 bilion daripada pelabur China, menyaksikan pelaburan yang paling tinggi dalam sejarah.
Read more »
Pelaburan saham ‘Tan Sri’: MHO gesa 400 mangsa lapor polisPETALING JAYA: Malaysia International Humanitarian Organisation (MHO) menggesa 400 pelabur yang menjadi mangsa penipuan pelaburan saham antarabangsa melibatkan kerugian dianggarkan RM56 juta untuk tampil membuat laporan polis.
Read more »
Dua lelaki bergaduh dipercayai ganggu isteri orangPETALING JAYA: Dua lelaki cedera selepas terlibat dalam pergaduhan dipercayai akibat mengganggu isteri orang dalam kejadian di Jalan Mutiara Raya, Cheras dekat sini semalam.
Read more »