Navigating recovery in consumer-driven economy

Forecast on spending: The second half of 2023 is most likely to show a decline in consumer spending due to both domestic and external headwinds. – LOW LAY PHON/The Star

BANK Negara Malaysia recently maintained its forecast that the Malaysian economy would grow between 4% and 5% in 2023.

But some economists argue that several economic challenges and uncertainties, such as the lag impact of higher interest rates, subsidy rationalisation, political uncertainty and slowing global performance, may dampen the near-term outlook for consumer spending.