Following the encouraging growth in the second quarter, Malaysia is expected to grow stronger in the third quarter of this year.
According to a Reuters survey, 22 economists 'believe' Malaysia will record 11.7% growth in the third quarter (July-September) after recording 8.9% in the previous quarter.
Capital Economics analysts are of the view that the low statistical base from the third quarter of 2021, will push towards a higher gross domestic product (GDP) growth reading in the third quarter of 2022.
Generally, the reopening from the Covid-19 closure should help ease the issue of labor shortages in certain sectors and also support the continued recovery of the tourism sector.
However, due to tighter monetary policy, a sluggish labor market as well as weak wage growth and external demand, it may hamper the stimulus to drive Malaysia's economy to grow stronger.
Earlier, the Malaysian government raised its growth forecast this year to 6.5% to 7% from 5.3% to 6.3%, but projected slower expansion in 2023 to 4.0% to 5.0%.
Meanwhile in a separate survey by Reuters, Malaysia's average growth this year is forecast to grow by 7.2% and fall to 4.2% in 2023.
For information, Malaysia's GDP data for the third quarter will be published on Friday (November 11).
