Malaysia’s economy surged by 7% in the fourth quarter from last year due to the continued expansion of domestic demand and resilient demand for electrical and electronic goods, said Nor Shamsiah Mohd Yunus, the governor of the Bank Negara Malaysia (BNM), on Friday.
Reuters polled economists expected the central bank to report a GDP in October-December of 6.6% higher than in the same period in 2021, but slowing down from 14.2% growth year on year in the third quarter.
In 2022, the economic growth was at 8.7%, higher than in 2021, and was the fastest full-year growth in 22 years, exceeding the government’s forecast of 6.5%–7%.
The central bank expected that growth this year would be moderate all year round, between 4% and 5%, amid the global slowdown.
On Friday, there were many risks, such as the increase in geopolitical strain, the re-emergence of supply chain interruptions, and the hike in inflation around the world.
Shamsiah told reporters that Malaysia would not go into a recession as investment remained strong and revenue was growing.
BNM anticipated that China’s reopening would spur tourism recovery and mitigate the impact of slowing export growth, and that headline and core inflation would remain moderate, despite being high, in 2023.In 2022, headline and core inflation averaged 3.3% and 3.0%, respectively.
The governor of BNM said that the decision to maintain the overnight policy rate (OPR) allowed the bank to assess the impact of the OPR adjustment on inflation and the economy, adding that this could give the country more clarity on inflation and economic output.
