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KUALA LUMPUR – The World Bank today maintained Malaysia’s economic growth forecast this year at 5.5%.
The growth is mainly driven by a robust rebound in consumption demand, it said in a report.
According to the Washington-based bank, Malaysia’s private consumption growth is forecast to reach 8.5% this year – its fastest pace since 2008, Xinhua reported.
The strong recovery in household spending is premised on further dissipation of public health concerns in the absence of a severe resurgence of Covid-19 cases, as well as continued policy support and gradual improvements to employment and income prospects, it added.
The World Bank also projected for Malaysia’s economy to grow at 4.5% in 2023 and 4.4% in 2024.
The Malaysian economy had contracted by 5.6% in 2020 but on the back of an expedited vaccination mandate, and easing mobility barriers, it grew at 3.1% last year.
The country’s economic recovery continues this year, expanding by a healthy 5% in the first quarter of 2022.
The growth was largely driven by an increase in domestic demand following the resumption of most economic activity as pandemic-related containment measures were further eased. – Bernama, June 13, 2022