Fitch rates Malaysia at BBB+ with stable outlook hinh anh 1Illustrative image (Photo: Internet)

Hanoi (VNA) – The international credit rating agency Fitch Ratings on July 19 affirmed Malaysia's long-term foreign-currency issuer default rating (IDR) at 'BBB+' with a stable outlook.

It said Malaysia's rating balances prospects for strong and broad-based medium-term growth and persistent current account surpluses with a highly diversified export base, against high public debt, a low government revenue base and lingering political uncertainty.

Malaysia's economy is gradually recovering from a contraction of 5.6 percent in 2020 caused by the COVID-19 pandemic, even though social distancing measures have been tightened over recent months.

Though a nationwide lockdown has been in place since the beginning of June due to a third COVID-19 wave, manufacturing and exports continue to benefit from thriving demand for Malaysia's export products, including electronics, crude oil and personal protective equipment made of rubber.

Fitch forecast that Malaysia’s GDP growth will hit 4.5 percent in 2021 and 6.3 percent in 2022 as the vaccine roll-out gathers pace./.