Malaysia's economy is expected to grow faster at 4% to 5% this year, driven by improved investment and external demand, according to the country's central bank. The country posted 3.7%, gross domestic product growth last year, down from 8.7% the previous year due to weak external demand resulting from China's economic slump and U.S. monetary policy tightening. "Global growth is expected to rebound in 2024, driven by the technology upcycle, tourism recovery, and low base effects in 2023," Bank Negara Malaysia said in its annual report released Wednesday. The bank added that the recovery of the tech cycle as well as new and existing investment projects would spur domestic growth. The central bank noted that despite subdued global demand and lower commodity prices last year, Malaysia's labor market conditions improved, coupled with heightened overall investment activity in the IT and electronics sectors. The country has been one of Asia's major electronics production hubs, with global semiconductor companies preparing further investments, to strengthen their supply chains. Tourism Malaysia, a government agency, is targeting 27.3 million tourist arrivals in 2024, surpassing pre-COVID levels of 26.1 million in 2019. Last year, Malaysia received 20.1 million tourist arrivals. In the annual report, Bank Negara explained that most industries are projected to grow in 2024, with the services and manufacturing sectors expected to expand 5.5% and 3.5%, respectively. However, the agriculture industry is expected to contract 0.5% due to dry weather conditions and the El Nino phenomenon, which will lead to lower oil palm production, one of Southeast Asia's major export commodities. The central bank projects that headline inflation will remain moderate, averaging between 2.0% and 3.5% in 2024. The country's inflation rate had been on a downward trend throughout 2023, falling to 1.6% in the fourth quarter. (ICE KUALA LUMPUR)

Fonte notizia: 25 Marzo 2024 ,Kuala Lumpur