The World Bank has cut its target for Malaysia’s GDP to 3.9% from 4.3% for 2023 amidst a substantial deceleration in external demand, reports Free Malaysia Today. However, domestic demand will continue to support economic resilience in the country, it said. Apurva Sanghi, who is the World Bank’s lead economist for Malaysia, said the reason for its downward revision comes as no surprise – anaemic global growth and weak external demand as export numbers have contracted by 3.3% and 9.4% in the first two quarters of this year.

However, the World Bank projects a moderate rise in GDP growth for 2024 at 4.3% from 4.2% previously. “We project stronger growth next year based on stronger global growth, higher oil prices, stronger domestic demand, higher number of approved investments, tourism bounce back, improvements in the labour market, and overall easing inflation. Indeed 2024 underscores an improvement in growth momentum relative to 2023,” Sanghi said.