Malaysia’s economy to bounce back in 2022: AMRO

People on a street in Malaysia's Kuala Lumpur on May 28, 2020 (Photo: AFP/VNA)

Kuala Lumpur (VNA) – Malaysia’s economy is expected to grow strongly this year, regaining momentum after COVID-19 infections disrupted its recovery in the third quarter of last year, according to the ASEAN Plus Three Macroeconomic Research Office (AMRO).

The office said while the country was currently experiencing a resurgence of infection by the Omicron variant, symptoms were much milder, thanks in large part to the almost 80 percent vaccination rate of the population.

The continuing vaccination programme and adequate healthcare capacity should keep Malaysia open to allow a sustained rebound in domestic demand. Accordingly, policies should be adjusted to support a robust and sustainable recovery, said AMRO.

According to the lead economist of a AMRO team, Dr. Sumio Ishikawa, the Malaysian economy will grow by 6 percent in 2022 from 3.1 percent in 2021.

This year's growth will be driven by a sustained rebound in domestic demand, as economic and social activities continue to recover despite the Omicron wave, he said, adding that Malaysia's exports should remain supported by buoyant global demand, as well as increased production capacity./.

VNA