Economic Outlook. Is Malaysia above the projections?
Effects from Covid-19 on the economic growth?
With economies reopening and Covid-19 measures being relaxed, economies are growing again. Finally, we do not see all those negative numbers anymore. In fact, looking at the chart below shows one thing; the global economy is rising and 2021 represented that first year of growth after a very low 2020. Meanwhile 2022 continued to show growth numbers even if this may trend lower since many economies are now on the path towards fighting inflation. Read it here: War of inflation versus interest rate
Image below shows emerging market and developing economies showing an average of close to 5% for 2022, 2023.
Growth Projections by Region
The region growing fastest would be the emerging and developing Asia. By the way, this is where Malaysia is grouped in. Meanwhile the Sub-Saharan Africa continued to show resilience and stable growth of around 4 percent every year. I think this is good news and Africa will be one of thoe regions where everyone would have to pay attention to. The EURO and the United States are now doing their best to control inflation. When rates rise, then sentiments are dampened. Thus, the consumption of goods and services will slow and businesses will not be thinking of expansion so much. Just need to be aware of this.
Malaysia’s fragile economy
Could we grow faster than all these predicted numbers? Could we maintain our export competitiveness even as the world slows down and perhaps import less? How do we control the inflation better beyond just using interest rates which is a sweeping measure and will also affect people with loans to pay every month? It may be best to go to the ground and identify the real causes and nip it in the bud. If someone raised their price and said it’s because costs have increased, can someone verified this and find out the details?
For example, if price of sugar is going up, should price of teh tarik go up immediately and at a higher %? For example, if prices of flour is going up, does this immediately translate to a 50 percent increase in the price of roti canai? Think about it yeah. Happy understanding that many times the power of choice is also within us too. Yes, I have decided to find a new favourite dry curry noodle after I found out that my favourite stall increased the price and reduced the portion. I am sure there are others who want my business.
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