KUALA LUMPUR, April 1 (Xinhua) -- The World Bank on Monday maintained Malaysia's 2024 growth forecast at 4.3 percent, with domestic demand continuing to be the main driver of growth.
The World Bank said in its latest report that the growth is forecasted to increase from 3.7 percent in 2023 on the expectation of a likely recovery in global growth and the easing of global financial conditions.
It also said domestic demand will continue to anchor growth.
According to the report, Malaysia's private consumption is expected to grow by 5.2 percent, driven by supportive labor market conditions and continuous household income support measures.
Meanwhile, its gross exports are projected to grow by 4.8 percent, in tandem with the expected recovery in global trade.
The growth, however, is subject to several downside risks, according to the World Bank.
"Global growth could be weaker than projected in the event of tighter monetary and financial conditions. Rising geopolitical tensions could also weaken external demand," said the bank.
It also noted that higher domestic inflation and weaker real income growth could affect the strength of consumption spending, especially for low income households. ■
