KUALA LUMPUR, Jun 3 (NNN-BERNAMA) – The International Monetary Fund (IMF), reiterated yesterday that, Malaysia’s economic growth will moderate to 4.5 percent this year.
The IMF executive board said in a statement that, the slower growth is reflecting largely the global headwinds.
It said, the external risks include the possibility of an abrupt global slowdown or recession, with an associated spike in global risk premia, capital outflows and sudden stop risks.
Geo-economic fragmentation and geopolitical tensions, resulting in a reconfiguration of trade, supply disruptions, and rising input costs, among other disturbances, could also negatively affect Malaysia’s growth prospects, according to the IMF.
Malaysia’s economic growth reached 8.7 percent in 2022, driven by pent-up domestic demand, following the reopening of the economy in Apr last year, and strong export performance.
However, the IMF noted that, the recovery remains uneven, with agriculture, mining, and particularly construction sectors, remaining below pre-pandemic levels, and inequality has risen during COVID-19.– NNN-BERNAMA