After ‘worst recession’ in Malaysia’s history, strong economic recovery expected in 2021, Fitch’s research unit predicts
BY IDA LIM
Malaysia is expected to record a strong recovery in economic growth next year. — Picture by Hari Anggara
KUALA LUMPUR, Aug 17 — Malaysia economic recovery in the second half of this year is expected to be gradual before bouncing back on its feet next year, having experienced its “worst recession” recently, the Fitch Group’s research unit said.
Fitch Solutions Country Risk and Industry Research was explaining why it had decided to revise its forecast of real GDP or economic growth for Malaysia at -4.5 percent for 2020, down from the previous figures of -2.8 percent. It also revised its 2021 forecast for Malaysia’s real GDP from the previous 5.7 percent to a more positive 6.3 percent.
Key reasons for the Fitch research unit’s revision of the 2020 figures include the 17.1 percent contraction of Malaysia’s real GDP in the second quarter of 2020 or from April to June as compared to the year before due to movement control order (MCO) measures, which the unit described as the “worst contraction in Malaysia’s history”.
It also said the -4.5 percent outlook for Malaysia’s real GDP is due to forecasted weaker domestic and external demand in the second half of 2020 in line with expected continued restrictions on travel and movement.
Source: Malay Mail Online, Monday, 17 Aug 2020 12:11 PM MYT2020 https://www.malaymail.com/news/malaysia/2020/08/17/after-worst-recession-in-malaysias-history-strong-economic-recovery-expecte/1894611
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