KUALA LUMPUR: The Malaysian Central Bank on Friday revealed that the country’s economy dropped to 3.7 percent in 2023 from 8.7 percent in 2022, due to global trade challenges.
Bank Negara Malaysia (BNM) stated in a release that the moderation in growth was primarily due to a challenging external environment, characterized by slower global trade, a downturn in the global tech sector, geopolitical tensions, and tighter monetary policies.
Despite the expiration of significant policy support as the economy reopened in 2022, BNM noted that the ongoing recovery in economic activity and labor market conditions contributed to growth in 2023. Additionally, the economy’s solid performance was supported by its resilient external position.
In the fourth quarter of 2023, the Malaysian economy expanded by 3 percent, with household spending buoyed by improving labor market conditions and reduced cost pressures, according to BNM.
Looking ahead, BNM anticipates that growth in 2024 will be driven by resilient domestic expenditure and an improvement in external demand.
