Skip to main content

In 2023, the pace of economic growth in Malaysia is expected to slow.

Economists predicted Thursday that the Malaysian economy would stall in 2023 due to difficult external conditions and weakening domestic demand.

In 2023, the pace of economic growth in Malaysia is expected to slow.

According to Xinhua News Agency, Maybank Investment Bank Research predicted in a report that Malaysia's full-year growth would slow to 4% in 2023 from an earlier projection of 8%. This slowdown would be caused by a reduction in domestic demand.

The consequences of rising inflation and interest rates on the cost of living and real disposable income are expected to dampen private consumption growth next year, according to the research firm.

It also predicts a slowing of the rate of increase in private consumption to match the reduced level of funding for government operations that is included in the Budget 2023.

It also noted that reduced expectations for global economic development would lead to falling exports and imports.

MIDF Research, on the other hand, predicts that Malaysia's GDP growth would decrease to 4.2% in 2023, mostly due to a slowdown in the country's export performance as a result of a slowdown in global demand.

For 2019, we predict a slowdown rather than a recession for the global economy. According to MIDF Research, "demand conditions in the United States and the European Union will decrease next year due to increased interest rates and elevated inflationary pressure."

The research firm predicts that Malaysia's real exports growth will decrease to 2.8% by 2022 from the 2022 growth prediction of 12.5%, with some of the support coming from an increase in the export of services in light of the increased optimism surrounding the country's tourism industry.

But in terms of merchandise trade, it is predicted that the average prices of crude palm oil (CPO) and Brent crude oil would remain elevated at 3,500 ringgit ($794) per tonne and $96 per barrel, respectively, for the upcoming year.

.net/YwotbKdP4sVunJGfdhmgww/e8f260a6-84bf-4222-a093-e1ef14e44c00/

Consistently strong consumer spending, enhanced tourism-related activities, and a resurgence in infrastructure projects are all reasons for optimism for the Malaysian domestic economy, according to MIDF Research.

However, Affin Hwang Investment Bank has lately reduced its GDP projections for 2023 from 4.7 percent to 3.7 percent on the grounds that a slowdown in global development will have a detrimental effect on Malaysia's open economy.

While Malaysia will feel the effects of the global slowdown in GDP, the research firm's consensus is that a recession is highly improbable due to the country's strong labor market and the steady recovery of tourism-related industries.

It did, however, speculate that the cost of living in Malaysia could rise without a serious effort on the part of the government to shore up the country's finances and allay the fears of sovereign rating agencies.

Comments

Popular posts from this blog

If the Federal Reserve doesn't do this, the U.S. economy and S&P 500 will have a hard landing.

The biggest reason to be hopeful that a recession caused by the Federal Reserve can be avoided next year was just taken away. In September and October, hourly pay went up, and in November, it went up even more. This pushed wage growth far above the range that is in line with the Fed's 2% inflation target. Nearly everyone agrees that the Fed needs to raise its inflation target, at least in practice, if the U.S. economy is to avoid a hard landing and a bigger drop for the S&P 500. The Fed might be willing to do this, but the economy would still need to cool down more before they stop raising interest rates. "The 2% inflation target is a lot more flexible than the Fed lets on," RSM chief economist Joe Brusuelas told IBD. "I don't think there's any constituency out there for the bloodletting that would be necessary." Brusuelas thinks that for inflation to return to 2%, the Fed would have to raise unemployment to 6.7%. But most of the way to 3% inflation ...

US military accesses crypto security threats

The military's innovation branch is examining cryptocurrencies to identify the threats to law enforcement and national security. DARPA will conduct the year-long research. DARPA built the first internet-supporting tech. The startup will give the Pentagon tools to help law enforcement clamp down on illegal digital asset use. Mark Flood, the organization's program manager, told The Washington Post that the report "maps out the cryptocurrency ecosystem in depth." The government hopes to use the data to acquire insights into traditional financial market trends and fight illicit funding. The deal is the latest example of federal authorities' efforts to stop terrorists, rogue states, and other bad actors from using cryptocurrencies to finance their activities. Last month, the Treasury Department sanctioned Tornado Cash, a service that let North Korean hackers repurchase stolen cryptocurrency. This week, the agency asked the public about cryptocurrency hazards to nationa...

SEBI's role in Indian forex trading

India allows currency trading. Indians can trade FX online with several firms. Forex trading in India is regulated by legislation. RBI is India's principal forex regulator. The RBI regulates forex trading strictly. Indians can't trade FX on margin. Forex brokers in India cannot offer leveraged trading. Leverage lets traders trade with more money than they have. In India, forex brokers can only offer 1:50 leverage. India's Sebi regulates forex trading. Sebi regulates India's Forex market. Sebi regulates India's financial institutions, including Forex. Sebi's Forex laws safeguard investors and maintain a fair, transparent market. Explaining India's Regulators The Reserve Bank of India (RBI) created the Foreign Exchange Management Act (FEMA) of 1999. Regulating India's financial sector. India's Reserve Bank oversees foreign exchange operations (RBI). SEBI regulates India's stock market. India's forex brokers have FEMA licenses. SEBI-regulated br...