THE Malaysian economy is projected to grow at a more moderate pace this year following a strong recovery in 2022, as economies around the world continue to struggle to sustain growth, the Statistics Department said.

Chief statistician Dr Mohd Uzir Mahidin said Malaysia’s merchandise trade is predicted to continue growing in 2023, albeit at a slower rate. 

“Based on the Finance Ministry’s report, total trade, exports and imports are projected to increase by 1.3%, 2.2% and 0.2%, respectively. These projections are in line with World Trade Organization estimates, which expect global trade to grow marginally by 1.0% in 2023. 

“Following slower external demand and diminished low-base effect, the manufacturing sector is foreseen to enter a moderate phase in 2023. The ongoing global uncertainty is also expected to influence economic and social activities as well as the labour market,” he said in a statement today. 

Adding to this, Uzir said Malaysia’s Leading Index decreased by 0.6%, equivalent to 0.7 point, to 110.7 points in December 2022 against 111.4 points in December 2021.

Looking at global economic scenario, the department said continuous worldwide inflation has eroded purchasing power and consumers are taking a cautious stance on spending, hence impacting economic performance. 

“Based on the World Economic Outlook Update released by the International Monetary Fund last month, world economic growth is projected to moderate to 2.9% in 2023 and improve to 3.1% in 2024. 

“Meanwhile, most economies displayed a slower GDP performance in the fourth quarter of last year as opposed to the third quarter,” it said. – Bernama, February 28, 2023.