MIDF forecasts Malaysia GDP growth at 4.7% in 2024

MIDF Research expects Malaysia’s GDP growth to cruise at 4.7% in 2024 compared to an estimated 4.2% in 2023, underpinned by resilient domestic demand and a revival in external trade.

“Moreover, stabilisation of monetary policy in major countries, a stronger recovery in China and supportive global commodity prices are expected to boost Malaysia’s external front in 2024,” said MIDF Research head/director Imran Yassin Md Yusof.

He said MIDF believed inflationary pressures and interest rates that influenced markets in 2023 have waned, while recovery in China’s economy and implementation of government policies would be key monitors next year.

Globally, he noted that growth prospects should improve due to stabilisation in major country policies, stronger demand from China, and supportive commodity prices that will aid Malaysia’s exports.

Domestically, steady private consumption, busier tourism, and infrastructure building will anchor growth. However, inflation may hover above 3% due to fuel subsidy rationalisation. 

MIDF sees the OPR holding steady at 3.00% in 2024 based on expectations of stable core inflation and challenging external climate. It also expects the ringgit to fundamentally strengthen with the ending of the US Federal Reserve tightening cycle.

For the stock market, the research house forecasts the FBM KLCI to reach 1,665 points by end-2024, supported by a less hostile monetary backdrop and resilient economic activities. – TMR / pic TMR FILE