The Malaysian economy is projected to expand by 5.8 percent in 2022, as domestic and external demand recovers, the World Bank said in a report on Tuesday, Xinhua reported.
The growth is mainly driven by acceleration in private consumption, which is expected to grow at 7.2 percent in 2022, according to the latest edition of the World Bank Malaysia Economic Monitor titled "Staying Afloat" launched on Tuesday.
Growth is anticipated to be broad-based, with recovery across all economic sectors, said the World Bank.
The forecast for the year ahead follows growth estimates of 3.3 percent in 2021, which remains clouded by several downside risks, including new COVID-19 outbreaks and weaker-than-expected global and regional growth.
The World Bank also foresees the Malaysian economy to grow at 4.5 percent in 2023.
The World Bank noted that a resurgence of the pandemic, including through the emergence of new variants, could dampen economic recovery globally and domestically.
It said that ongoing disruptions to global value chains could also have a negative impact on Malaysia's trade and manufacturing activities in the near term.
Increased vulnerability among affected households and businesses could also constrain growth, it added.