Malaysia’s economy grows 8.7pct in 2022, fastest in Southeast Asia and best since 2000
KUALA LUMPUR: Malaysia’s economy grows at the fastest pace among Southeast Asian nations, expanding 8.7 per cent in 2022.
The 8.7 per cent is also the country’s highest since 2000, although the pace in the fourth quarter (Q4) of 2022 slowed to 7.0 per cent from the blistering 14.2 per cent in the preceding quarter.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth in Q4 was driven by continued expansion in domestic demand, sustained labour market recovery and the resilient demand for electrical and electronics (E&E) and recovery in tourism activities.
“The moderation recorded in Q4 as compared to Q3 2022 was due to the waning support from stimulus measures and low base effect recorded in Q3 2021,” he told reporters during Bank Negara Malaysia’s Q4 2022 GDP briefing here today.
In Q3 2022, Malaysia’s GDP surged 14.2 per cent.
Bank Negara said the country’s headline inflation moderated to 3.9 per cent during Q4 (Q3 2022: 4.5 per cent).
The moderation was mainly due to the lapse in the base effect on electricity inflation, a key contributor to the higher inflation in the third quarter of 2021.
The moderating trend in key global commodity prices partly led to lower inflation in some Consumer Price Index (CPI) items, including fuel.
Moving into 2023, Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus said domestic demand would remain the key driver of growth amid challenging global environment.
Earlier, the central bank projected that the Malaysian economy to expand by four to five per cent in 2023.
“The outlook, however, is subject to risks related to weaker-than-expected global growth, further escalation of geopolitical tensions, re-emergence of significant supply chain disruptions, more persistent inflation necessitating tighter monetary policy and higher risk aversion in global financial markets,” she said.