PETALING JAYA: Malaysia’s gross domestic product growth (GDP) is projected to be between -2% to 0.5% this year, a sharp decline from the 4.3% growth seen in 2019, according to Bank Negara Malaysia’s economic and monetary review.
In its report, the central bank noted that the domestic economy will be impacted by the necessary global and domestic actions to contain the Covid-19 outbreak.
“The domestic economy will also be affected by the sharp decline and volatile shifts in crude oil prices and continued supply disruption in the commodities sector.
“Beyond the movement control order (MCO) period, reduced social and recreational activities until the pandemic is fully controlled globally and domestically will continue to dampen consumption and investment activity,” it said.
It cautioned that the baseline growth projection could, however, be lifted by a stronger than expected impact from the various stimulus measures by the federal government and additional measures implemented by several state governments.
BNM is expecting domestic growth prospects to improve towards the end of the year, in line with the projected recovery in global demand and amid continued support from policy measures.
“The anticipated recovery from supply disruptions in the commodities sector and higher public sector expenditure will support the gradual improvement in the Malaysian economy in the latter part of the year,” BNM elaborated.
Public sector expenditure will be underpinned by the continuation of large scale transport related projects by public corporations and the implementation of more small-scale projects worth RM4 billion by the federal government.
source https://www.thesundaily.my/business/bnm-2020-gdp-estimated-between-2-to-05-GC2206866
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