SINGAPORE, Jan 12 (NNN-Bernama) — Consumer spending in Malaysia will post good growth in 2022, with real household spending projected to grow 5.1 per cent year-on-year (y-o-y), according to a United Kingdom-based research firm.
“This is a notable improvement from the 0.5 per cent growth estimated for 2021, as impacts from COVID-19 continued to weigh on domestic demand,” said Fitch Solutions Country Risk and Industry Research in a statement Wednesday.
The research house said the recovery in consumer spending over 2022 will come as the wider economy recovers, with growth mainly driven by private consumption and fixed investments.
“At RM768.1 billion (US$183.7 billion) over 2022, real household spending will be 1.8 per cent higher than the RM754.6 billion (US$180.4 billion) posted in 2019, pre-COVID-19,” it said.
Fitch Solutions said its consumer spending forecast is in line with its Country Risk team’s view that the wider economy is expected to grow by 5.5 per cent over 2022.
It noted that the country’s unemployment rate will begin to soften over 2022, dropping to an average of 3.9 per cent of the labour force from 4.7 per cent in 2021.
— NNN-BERNAMA
