‘Malaysia’s GDP growth to inch down to 4.5% in 2020, 2021’

KUALA LUMPUR: The World Bank said Malaysia’s economic growth, as measured by gross domestic product (GDP), is expected to inch down to 4.5% year-on-year (y-o-y) in 2020 and 2021, with weak export expansion partly offset by strong domestic demand.

The World Bank said in the January 2020 edition of its Global Economic Prospects report that Malaysia’s strong domestic demand is expected to be underpinned by favourable financing conditions, rebound in investments, stable labour market conditions and low inflation.

“Growth in the economies that are deeply integrated into global and regional production networks is expected to moderate further in 2021-22, and to adjust a bit faster than expected towards potential, reflecting capacity constraints and subdued external demand,” it said.

For 2019, the World Bank said its Malaysia GDP growth forecast is unchanged at 4.6% y-o-y compared to the bank’s June 2019 projections.

For 2020 and 2021, the World Bank said its Malaysia’s GDP growth forecasts were cut by 0.1 percentage point each to 4.5%.

Bank Negara Malaysia (BNM) is scheduled to announce the nation’s 2019 fourth quarter and full-year GDP numbers on Feb 12, according to the central bank’s website.

In 2018, Malaysia’s GDP expanded 4.7% y-o-y, BNM said.

Source: TheEdgeMarkets