World Bank upgrades Malaysia’s GDP growth forecast to 4.9%

KUALA LUMPUR: The World Bank has upgraded Malaysia’s economic growth forecast to 4.9% in 2024, an increase from its initial 4.3% forecast set in April, according to Apurva Sanghi, its lead economist for Malaysia.

He said both domestic and external factors back the upgraded growth forecast as the global economy is doing much better than expected six months ago.

On the domestic front, he said the positive economic momentum, rising political stability, and an increasingly conducive policy environment that boosts and mobilises more investments, have contributed to the upgraded growth projection.

“Global growth is expected to stabilise at around 2.6% this year, despite ongoing geopolitical tensions and high interest rates, while inflation is receding, so there is a new appetite for growth especially in advanced economies.

“Malaysia is in a good place. In emerging markets in general, (there are) positive trends in consumer confidence, manufacturing and services,” he told the media during a briefing of the October 2024 Malaysia Economic Monitor (MEM) at the World Bank office here Tuesday (Oct 8).

“The World Bank projects Malaysia to reach high-income nation status by 2028, but if the ringgit’s performance stays at current levels, the goal could be reached a year earlier,” Apurva said.

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