Malaysia's economy records 8.7% GDP growth in 2022, the highest in 22 years

Malaysia grew at the quickest pace in over two decades in 2022, making it the fastest-growing economy in Asia, as the pent-up demand helped the nation's GDP grow to 8.7 per cent, the highest level since 2000, data from the Bank Negara Malaysia and the Department of Statistics showed, Bloomberg reported.

In October and December period, the economy rose higher than the expected seven per cent than a year ago, with the help of domestic demand.

The data also showed that the economy contracted 2.6 per cent from the September quarter of last year.

These points might risk Malaysia's spot among Asia's top 13 economies, especially when economists saw the pace of the economy slowing to four per cent this year.

As per economists, while the cash handouts and subsidies on food and fuel helped to maintain demand in 2022 despite high-interest rates, it is expected that a slowing global economy can hurt Malaysia's exports.

The central bank governor Nor Shamsiah Yunus in a press briefing on Friday said that though the balance of risks of growth remains tilted to the downside, they aren't great enough to push the country into recession.

In December last year, the export was six per cent less than what was expected and substantially slower after 16 consecutive months of double-digit expansion.

Domestic demand is expected to continue to drive the economy in 2023.

(With inputs from agencies)

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