World Bank Forecasts Malaysia's Economy to Grow at 4.9% in 2024
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Loading... - Zhuoyi Man
- 09 Oct 2024
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The World Bank has projected Malaysia's economy to grow at a rate of 4.9% in 2024, following a weaker-than-expected growth of 3.7% in 2023. This revised forecast marks an increase of 0.6 percentage points from the bank's previous prediction in April 2024.
The upward revision is attributed to stronger-than-anticipated household consumption, along with improved investment and trade performance observed in the first half of the year. The World Bank noted that recent data indicates sustained strength in domestic demand and export activities in the latter half of the year.
Private consumption is expected to rise to 5.5% in 2024, up from 4.7% in 2023. This growth is supported by better labor market conditions, wage growth, and ongoing government support for household incomes.
Exports are anticipated to rebound with a growth of 5.9% in 2024, recovering from a decline of 8.1% in 2023. This recovery is driven by improved global trade conditions, increased demand for electrical and electronics exports, and a continued rise in tourist arrivals boosting services exports.
Looking ahead to 2025, the World Bank expects Malaysia's growth to moderate to 4.5%, reflecting more modest growth in trade and investment.
