Country Economic Forecasts - Malaysia
The Malaysian economy exited recession with 6.5% q/q growth in Q4, as expected. After a bumpy 2021, we expect economic momentum to improve further in 2022. However, external risks have risen. The conflict between Russia and Ukraine, tighter global monetary policy conditions, and a slowdown in China have led us to lower our outlook for trade and downgrade our GDP growth forecasts to 6.1% in 2022 and 6.4% in 2023. We still expect Bank Negara Malaysia to raise rates twice by a total of 50bps from Q3.
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