Malaysia’s economy is expected to grow between 4.0% and 5.0% in 2023, despite ongoing global uncertainties, according to Bank Negara Malaysia in its 2022 annual report.
The central bank attributed this expansion to robust domestic demand, labour market improvements, continued multi-year investments, and increased tourism activity.
However, the global environment is anticipated to remain challenging due to slower growth and tighter monetary policies in major economies, along with subdued international trade activity.
The report also predicted that headline and core inflation in 2023 would average between 2.8% and 3.8% due to reduced prices of essential commodities.
Nevertheless, certain external factors such as geopolitical tensions, extreme weather, and higher demand from China could keep prices elevated.
Bank Negara Malaysia emphasised that its monetary policy would continue to support sustainable economic growth while maintaining price stability.
