KUALA LUMPUR, July 16 (Xinhua) -- BMI Country Risk and Industry Research has held a positive outlook for consumer spending in Malaysia over 2024 and 2025 as an ongoing economic recovery of the country feeds through to stable real consumer spending growth over the year.
The FitchSolutions unit said in a note on Monday that easing inflationary pressures and a stable labor market will form the base for stable consumer spending.
While consumer confidence remains sluggish, it said strong showings in recent retail sales data indicate an improving consumer outlook in Malaysia.
However, it noted the key risk to the outlook over 2024 remains high debt levels of households amid an elevated interest rate environment.
This will require consumers to allocate more of their budgets to debt repayments, which will constrain their ability to spend on other goods and services, said the research house.
BMI forecast household spending to grow by 5 percent year on year over 2024, in real terms, to a value of 904.6 billion ringgit (193.34 billion U.S. dollars).
Over 2025, it foresees household spending to hold steady, growing 4.8 percent year on year, in real terms, to a value of 948 billion ringgit (202.66 billion dollars). ■