MIDF retains Malaysia's 2023 GDP growth forecast at 4.2%

MIDF Research predicts the GDP growth will pick up to 4.7%in 2024.

KUALA LUMPUR: MIDF Research has reiterated its forecast that Malaysia’s gross domestic product (GDP) will grow 4.2% in 2023 before picking up to 4.7% next year following the narrower contraction in the leading index (LI) recorded in August 2023.

Data released by the Statistics Department yesterday showed the contraction of the LI – a tool utilised for predicting economic trends four to six months ahead – which narrowed by 0.5% to 109.7 points in August from a decline of 1% (108.9 points) in July.

MIDF Research said in a note yesterday that it viewed the improvement in the LI as signalling better growth momentum in the coming months, although the continued decline indicated that the momentum would remain moderate.

“We believe the LI will show further improvement and the coincident index will continue to grow,” it said. — Bernama