KUALA LUMPUR: Malaysia’s economic momentum is expected to steadily improve heading into next year, with gross domestic product (GDP) set to grow by 4.5 per cent to 5.5 per cent in 2024 from an estimated 4.0 per cent this year, according to RAM Rating Services Bhd (RAM Ratings). The economy is benefitting from a potential turnaround in external demand, the credit rating agency said in a statement in conjunction with its Economic Outlook 2024 report released today. "Resilient domestic demand, supported by benign inflation and interest rates would also propel growth momentum,” it said. On the fiscal side, RAM Ratings estimated fiscal deficit to clock in at 4.2 per cent of GDP in 2024, reflecting the fiscal consolidation path of the government. It said a spike in global food and commodity prices could pressure domestic demand, as would unintended price ripple effects if the retargeting of RON95 subsidies were poorly executed.

Source: The Star December 20, 2023 23:44 UTC