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Malaysia GDP growth 5.46% y-o-y in Q1-23

- Malaysia's GDP growth in Q1-23 recorded a 5.46% year-on-year increase, representing the lowest growth rate since Q1-22.
- Despite the slowdown, the first-quarter growth still surpasses the long-run average by 1.59 percentage points, suggesting a relatively positive economic trajectory.

Bank Negara Malaysia: May-23

• The MPC of Bank Negara Malaysia increases the OPR by 25 basis points to 3.00 percent, indicating an effort to manage inflation and influence borrowing costs amid a resilient economy.
• Economic expansion in Malaysia into Q1 2023 is expected, primarily driven by domestic demand, declining unemployment rates, and bolstered by a boost in tourism activities and infrastructure projects.
• With headline and core inflation expected to average between 2.8% - 3.8% throughout 2023, the MPC's decision aims to strike a balance between economic growth and inflation management, demonstrating a trend towards normalization post-COVID-19.