KUALA LUMPUR (Reuters) – Malaysia’s economy will grow at a slower pace in 2023 compared to this year, finance minister Tengku Zafrul Aziz said in a statement on Wednesday.
Zafrul cited slowing global growth, rising commodity and food prices, U.S.-China tensions and China’s strict COVID-19 containment measures that were affecting supply chains.
Malaysia had earlier forecast its economy would grow 5.3% to 6.3% this year, with the central bank saying last month that it could be in the upper end of the range.
Zafrul also said growth in the fourth quarter of this year will be more challenging.
He reiterated that Malaysia had no plans to peg the ringgit currency to the U.S. dollar amid a drop in value.
The Malaysian ringgit has dropped nearly 9% this year and hit a 24-year low this week.
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(Reporting by A. Ananthalakshmi, Rozanna Latiff; Editing by Kanupriya Kapoor)