'The projections set are quite high in line with the major macroeconomic problems.'
The World Bank expressed confidence that Malaysia is on track for excellent economic growth for 2022.
Through the World Bank East Asia and the Pacific Economic Update report, Malaysia's economic growth forecast measured by Gross Domestic Product (GDP) was updated from 5.5% to 6.4%.
In addition, the country's GDP reading is predicted to increase by 4.2% in 2023 based on the strengthening of domestic demand as well as the continued recovery in the labor market.
Also outlined is the recovery of domestic and foreign tourism activities and the multi-year investment project will be a strong pillar of support for Malaysia's economic growth.
However, behind all that there are still external negative factors that may slow down Malaysia's potential economic growth.
According to economist, Aaditya Mattoo, the slowdown in the growth of developed countries such as China as well as the unfavorable financial situation and supply chain issues can affect the country's imports.
At the domestic level, speculation about the Malaysian general election also increases investor uncertainty in the near term.
Not to be forgotten is the inflation factor due to the increase in food costs and the fall in the value of the ringgit which is a concern for the uneven economic recovery.
As an explanation, not all poor people receive enough support and many face deep financial problems.
Therefore, it is not surprising if Malaysia can be misled from the projection if these problems fail to be dealt with properly.
