Malaysia's Finance Ministry forecast on Friday that the Southeast Asian country's economy would expand 4-5 percent in 2023.

The pace of economic recovery is dependent on various factors including successful containment of the COVID-19 pandemic, support for cost of living and efforts in mitigating the downside risks such as geopolitical uncertainties, global inflation as well as tightening financial conditions, the ministry said in its 2023 economic outlook report.

Concerning the full year of 2022, the economic growth is expected to register a higher growth within the range of 6.5 percent to 7 percent, according to the ministry.

Due in part to continued implementation of development programs and projects, the ministry said the economy is expected to expand further in the second half of the year.

The growth prospects are supported by the resumption of economic and social activities and improvement in international travel activities, it said, adding the economy is expected to gain its growth momentum in the second half of the year due to stronger domestic demand.

Malaysia's economy expanded 6.9 percent in the first half of this year, thanks to the favorable momentum in domestic economy and continued improvement of the labor market conditions.

The strong performance is expected to sustain on the back of an increase in private consumption and business activities as well as the government's consistent policy support, the ministry said.