Malaysia's Gross Domestic Product (GDP) has shown steady growth from 2013 to 2023, reaching 1.6461 trillion Malaysian Ringgits in 2023. This growth has exhibited variability, with a significant drop of -6.38% in 2020 due to the impact of the pandemic, but it bounced back with an 8.17% increase in 2021. While the year-on-year growth has slowed in recent years, the Compound Annual Growth Rate (CAGR) over the last five years stands at 2.6%. Between 2024 and 2028, the GDP is projected to grow at a 2.45% CAGR, indicating moderate growth expectations.
Future trends to watch include:
- The effects of global economic conditions and trade tensions on Malaysia's export-driven economy.
- The impact of technological advancements and digital transformation initiatives on economic productivity.
- Government policies and investments, particularly in infrastructure and human capital development, which may influence medium-to-long-term growth.
- External factors such as commodity prices and foreign direct investments, which play a crucial role in the Malaysian economy.