Malaysia’s economic growth could slip to 4.8%, warns World Bank

 

The World Bank has predicted that Malaysia’s economy will grow by 5.5% this year, in line with Bank Negara Malaysia’s forecast of between 5.3% and 6.3%. (Reuters pic)

KUALA LUMPUR: The World Bank has forecast Malaysia’s economy to grow by 5.5% in 2022, driven by the recovery in domestic demand and expansion in exports.

However, it cautioned that the growth could slow to 4.8% if global conditions worsen amid the Russia-Ukraine conflict, the financial tightening in the US and the structural slowdown in China, Bernama reported.

It quoted the bank’s East Asia and Pacific (EAC) Economic Update April 2022, titled “Braving the Storm”, as saying that while the economy was projected to be on a recovery path, “Covid-19, food inflation and floods are expected to weigh down progress on the wellbeing of the poor and vulnerable’’.

On March 30, Bank Negara Malaysia projected Malaysia’s economy to grow by between 5.3% and 6.3% this year, slightly lower than the government’s official forecast of a 5.5% to 6.5% growth in the gross domestic product (GDP). - FMT