KUALA LUMPUR: Malaysia's gross domestic product (GDP) is expected to grow 4.7 per cent in 2024 from 4.2 per cent this year, driven by robust domestic demand and the recovery of external trade.
MIDF Research associate director and economist Abdul Mui'zz Morhalim said there is stabilisation in exports from September to October, although a smaller decline appeared in the response.
"We expect the improvement to come from the fourth quarter and onwards.
"If you were to compare against the global semiconductor cycle, the sterilisation with bottoming of the growth in the decline in global semiconductor sales was recorded back in around April or May.
"We have seen the third quarter has been performing better in terms of local sales. That is why we take that as a lead because there is turnaround with the market globally," he told reporters at the MIDF' Research's market outlook presentation here today.
MIDF Reseach head of research Imran Yassin Md Yusof said external trade has been on a negative growth throughout the year.
He, however, expects a positive growth in 2024.
"It is going to help push our GDP to give one support, that is one engine running and obviously demand is expected to be resilient. With two engines running we are expecting better growth for Malaysia next year," he added.
MIDF Research also expects stabilisation of monetary policies in major nations, a recovery in China and favourable global commodity prices to enhance Malaysia's external economic prospects in 2024.
The firm said the global economy is expected to grow next year at roughly the same rate as this year.
This is due to prior policy tightening that had restrained the growth of advanced economies.
MIDF Research expects the overnight policy rate to remain at 3.00 per cent, providing support to core inflation amid a challenging external environment.