KUALA LUMPUR, Oct. 8 (Xinhua) -- Following weaker-than-expected growth in 2023, Malaysia is projected to grow at a higher rate of 4.9 percent in 2024, the World Bank said Tuesday.
The bank said in a note that Malaysia's economy is seen to expand faster from 3.7 percent in 2023, an increase of 0.6 percentage points compared to its previous forecast in April 2024.
According to the bank, this reassessment reflects stronger-than-expected household consumption as well as improved investment and trade performance in the first half.
"Recent data also point to continued strength in domestic demand and export activities in the second half," it said.
Private consumption is projected to expand to 5.5 percent in 2024 from 4.7 percent in 2023, supported by further improvement in labor market conditions and wage growth, as well as continued government household income support.
Exports are expected to recover to 5.9 percent growth in 2024 from -8.1 percent in 2023, driven by improved global trade, increased demand for electrical and electronics (E&E) exports, and continued rise in tourist arrivals driving services exports.
Growth is expected to expand at a more moderate rate of 4.5 percent in 2025, with more modest growth in trade and investment, said the World Bank. ■
