External challenges could weigh on economy

AmBank Group chief economist Anthony Dass, who is also a member of the Economic Action Council Secretariat, said looking into the rest of 2022, upside to the economy remains. However, he said the ongoing external challenges remain a concern to the domestic economy. These include the Russia-Ukraine war, China’s zero-Covid-19 policy, aggressive rate hikes, any further sanctions by Western allies on Russia, geopolitical tension in Sri Lanka leading to any backlash in other countries, risk of a debt crisis and financial markets’ volatility. B

PETALING JAYA: The Malaysian economy is not out of the woods yet despite the strong growth in the first quarter (1Q22).

The external challenges and domestic headwinds could weigh on the country’s economy this year. Nevertheless, economists said there are bright spots that would spur the economy on a stronger footing.