RAM Rating Services Bhd (RAM Ratings) has cut its 2022 gross domestic product (GDP) growth forecast for Malaysia to 5.8% from its projection of 6.8% made last December citing slower global economic growth amid the Russia-Ukraine war, the drag on consumption demand from higher inflationary pressures, and lower overall output due to protracted labour shortages.
RAM Rating Services Bhd said on Wednesday (Dec 8) the bond-rating firm projects Malaysia's economic growth, as measured by gross domestic product, to reach 6.8% for 2022 from an estimated 3.8% in 2021 on low base effects and the country's Covid-19 vaccination progress.