Malaysia set to hit 2023 GDP target based on positive momentum

Malaysia set to hit 2023 GDP target based on positive momentum

KUALA LUMPUR,(NNN-Bernama) — Malaysia is set to achieve the 2023 gross domestic product growth target of 4-5 per cent for 2023 based on the good economic momentum seen so far, the Department of Statistics Malaysia (DoSM) said.

Chief statistician Dr Mohd Uzir Mahidin said consumer spending sentiment is normally at an above average level in the fourth quarter (4Q) of the year compared to other quarters.

“It is during 4Q that consumers tend to spend more than usual, including for back-to-school, new year and festive spending, with demand for goods being higher.

“Demand is the largest component of GDP so we expect there’s room for growth in 4Q GDP performance,” he told Bernama Wednesday night.

Asked whether GDP growth for 4Q is forecast to be higher than in 3Q, Mohd Uzir said it should be gauged based on available data.

Looking at the Industrial Production Index (IPI) for October, he said, the mining, electricity and manufacturing sectors recorded growth, while Malaysia’s trade also expanded and continued to show a surplus.

It was reported that trade surplus reached RM12.87 billion in October, marking the 42nd consecutive month of trade surplus since May 2020.

At the same time, unemployment has seen a decline, he continued. The country’s unemployment rate in October stood at 3.4 per cent.

“So the data for October signals that the Malaysian economy is moving towards growth. Up to this month (January), we have seen economic activities in November and December remaining in growth territory.

“GDP growth for the first three quarters combined was already 3.9 per cent. Therefore, I expect the country’s economic growth for 2023 is going in the direction that the government has targeted,” he said.

According to Bank Negara Malaysia (central bank), the Malaysian economy grew by 3.3 per cent in the third quarter (second quarter: 2.9 per cent), while overall, the economy expanded by 3.9 per cent in the first three quarters of 2023.

— NNN-BERNAMA

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