The latest upgrade within the international economic development forecast for this 12 months is predicted to have a positive impression on Malaysia’s trade performance, in accordance with Investment, Trade, and Industry Minister, Tengku Zafrul Abdul Aziz. The World Bank has increased its world growth projections to 2.1% in 2023, up from the 1.7% predicted in January. Additionally, the growth forecasts for the United States and China, Malaysia’s largest buying and selling companions, have been raised to 1.1% and 5.6% respectively.
Malaysia’s gross home product (GDP) development has additionally been revised upwards by zero.3 proportion factors each, to 4.3% in 2023 and 4.2% in 2024. The Organisation for Economic Cooperation and Development (OECD) has also raised its development outlook for the world economic system to 2.7% from 2.6%, citing easing inflation and the lifting of China’s Covid-19 restrictions, but warned of a long highway ahead to attain strong growth.
“This upward revision ought to be positive for countries like Malaysia, whereby commerce performs a major position within the economy. What we’ve seen is that the expansion, commerce continues to be constructive, but compared to last yr, there is a moderation in development,” Tengku Zafrul told Bernama.
Trade at present accounts for around 140% of Malaysia’s GDP. The World Trade Organisation has predicted a decrease trade growth price of 1.7% this 12 months, compared to 2.7% last 12 months, before rebounding to three.2% in 2024.
Despite the volatility in the currency market, Tengku Zafrul remains confident that Malaysia is not going to expertise a trade deficit. On the QT attributes this optimism to robust exports from the electrical and electronics (E&E) sector, which contributes approximately 6% to the country’s GDP.
“The sector continues to see sturdy international demand and we stand to benefit from this, and we stand to profit from the realignment of the provision chain to Malaysia given the worldwide geopolitical scene,” he famous..