The assertion that Malaysia is in an economic crisis was refuted by Finance Minister Tengku Zafrul Aziz, who also noted that the global economic forecast for 2023 is anticipated to be more difficult for all nations. “We must get ready for 2023; it will be a difficult year. The global economy, which includes Malaysia, will be impacted by what happens in the United States, China, and Europe.
” To pretend we will not be harmed by the global economic slowdown is not truth; we will all be affected,” he declared. He underlined that while China’s 8% economic growth helped to mitigate some of the consequences of the 2008 financial crisis, all of the world’s major economies are anticipated to contract in 2019.
According to projections, the economies of Europe, the US, and China are all anticipated to contract in 2023 as compared to 2022. It’s only September right now. Tengku Zafrul highlighted to the Gross Domestic Product (GDP) growth of this year’s first and second quarters, which was positive growth of 5.0% and 8.9%, respectively, and rejected accusations that the nation is in an economic crisis. According to him, the country’s economic growth is anticipated to outpace projections given the extent of the recovery.
Tengku Zafrul also made a comparison between the nation’s current economic position and the Asian financial crisis of 1997. In 1997, the ringgit dropped to 53.8%, interest rates shot up to 11%, and the GDP plunged to -7.4%. Current interest rates are 2.5%, while the second quarter’s GDP was 8.9%. Since we went through one in 1997, we are aware of what a crisis is (see image). Interest rates will rise by 11% during a crisis, and our currency will depreciate by nearly 54%.
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