Malaysia's economy seen moderating to 4% in 2023 on external headwinds

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Malaysia's economy seen moderating to 4% in 2023 on external headwinds
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On the global front, Citi Research said it continues to see 'rolling country level recessions”.

KUALA LUMPUR: Citi Research expects Malaysia’s economic growth to moderate to 4 per cent in 2023 due to"base effects and external headwinds.”

"We raised our 2022 gross domestic product forecast to 8.7%, substantially above the finance ministry’s forecast of 6.5- 7%, and see a moderation to 4% in 2023,” said Citi head of Asean Economics Kit Wei Zheng. On Bank Negara Malaysia’s ’s decision yesterday to maintain the overnight policy rate at 2.75 per cent, Citi Research said it sees this as an intermittent pause, not just to allow for more time to assess the impact of earlier hikes, but for changes to the balance of risks from policy adjustments in the budget.

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