Economists are forecasting a lower GDP for Malaysia in Q2 2023, despite expectations of support from domestic consumption and improvements in the labour market. The unemployment rate in Malaysia dropped to 3.4% in June from 3.6% in January. Economist Lee Heng Guie predicts a slowdown in economic growth to 3% YoY in 2Q23, marking the third consecutive quarter of moderation. China's economic slowdown, a significant export market for Malaysia, is impacting global demand, prompting concerns across Southeast Asia. Amid weakening consumer spending indicators in Malaysia and a contracting manufacturing sector, economists are emphasising the importance of domestic demand and diversification to counteract external volatility. Projections for Malaysia's 2023 GDP growth vary among analysts, but generally fall within a range of 4% to 5%.
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