Wednesday 17 Apr 2024
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KUALA LUMPUR (Jan 20): RHB Investment Bank (RHB IB) has maintained its projection that Malaysia's gross domestic product (GDP) will grow by 4.6% in 2024. 

RHB IB said the growth momentum is expected to accelerate this year, driven by improvements in external demand.

“The nominal export growth is projected to rebound by 4.3% year-on-year (y-o-y) in 2024, compared to a decline of 8% in 2023. This rebound is fuelled by resilient global and regional economic growth prospects, coupled with re-acceleration of the global technology cycle,” it said in a note.

On the domestic front, the investment bank kept a positive outlook on private consumption growth in Malaysia, supported by robust labour market demand conditions.

RHBIB also cited potential upside risks to its 2024 GDP growth forecast.

“[These risks] would emanate from the continuation of major infrastructure projects, coupled with business-friendly policies and incentives focusing on priority sectors such as technology, tourism, and agriculture, as well as those with export capacity.

“The continuation of transport-related projects is expected to impact the economy positively via higher investment spending,” it added.

Meanwhile, RHB IB revised its GDP growth forecast for 2023 to 3.8% y-o-y from 4.1% previously, based on its latest fourth-quarter growth estimate.

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