KUALA LUMPUR (April 6): Malaysia’s economy is projected to grow at 6% this year and moderate to 5.4% in 2023, according to the Asian Development Bank (ADB).
The ADB in its Asian Development Outlook report released on Wednesday (April 6) said GDP growth in developing Asia is expected to stay strong at 5.2% in 2022 and 5.3% in 2023.
It said the pace of the recovery, however, would vary across subregions.
But in general, it said regional growth is being supported by a robust recovery in domestic demand in economies that are continuing to catch up with their pre-pandemic trend, particularly in South Asia.
It said that here, growth will remain strong in 2022 at a forecast 7%, accelerating to 7.4% in 2023.
The ADB said East Asia almost converged to its pre-Covid-19 pandemic trend in 2021, and growth rates are expected to normalise to 4.7% in 2022 and 4.5% in 2023.
Meanwhile, commenting on Malaysia, the bank said growth recovered in 2021, supported by rising global demand for manufactured exports and terms-of-trade gains from exports of natural resources, and strong domestic demand.
It said a robust health system and high vaccination rates against Covid-19 further supported the recovery.
“Rising imports from a pickup in domestic investment trimmed the current account surplus.
“Inflationary pressure is building on rising energy prices, the phasing out of an electricity subsidy and continuing supply disruptions.
“Assisting poor households to return to the pre-pandemic norm is the major policy challenge,” the bank said.