Malaysia's GDP growth set to accelerate to 4.6% in 2024 - RHB IB

KUALA LUMPUR: RHB Investment Bank (RHBIB) has maintained its projection that Malaysia's gross domestic product (GDP) will grow by 4.6 per cent in 2024.

RHBIB said the growth momentum is expected to accelerate this year, driven by improvements in external demand.

"The nominal export growth is projected to rebound by 4.3 per cent year-on-year (y-o-y) in 2024, compared to a decline of eight per cent in 2023. This rebound is fueled by resilient global and regional economic growth prospects, coupled with the re-acceleration in the global technology cycle,” it said in a note.

On the domestic front, the investment bank kept a positive outlook on private consumption growth in Malaysia, supported by robust labour market demand conditions.

RHBIB also cited potential upside risks to its 2024 GDP growth forecast.

"(These risks) would emanate from the continuation of major infrastructure projects coupled with business-friendly policies and incentives focusing on priority sectors such as technology, tourism, and agriculture, as well as those with export capacity.

"The continuation of transport-related projects are expected to impact the economy positively via higher investment spending,” it added.

Meanwhile, RHBIB has revised its GDP growth forecast for 2023 to 3.8 per cent y-o-y from 4.1 per cent previously based on its latest fourth quarter growth estimate. - Bernama