Illustrative image (Photo: Xinhua) Kuala Lumpur (VNA) – The World Bank (WB) has reviseddown Malaysia’s GDP growth forecast to 4.5 percent in 2021 from 6 percent estimatedin March and 6.7 percent last December amid a dramatic resurgence of the COVID-19 pandemic beginning in mid-April.
The revision reflects the slower pathway towardssuppression of the pandemic and the slower-than-expected vaccine rollout. Thetrajectory and pace of growth will depend on the duration and severity ofmovement restrictions, the containment of the pandemic, and the pace of thevaccine rollout, according to the “World Bank Malaysia Economic Monitor:Weathering the Surge,” launched on June 23.
The WB Group's senior economist Shakira Teh Sharifuddin saidthe country's economic recovery is being hindered by a resurgence in infectionssince mid-April, coupled with the re-imposition of the Movement Control Order (MCO)that is expected to have a significant impact on private consumption.
According to the report, Malaysia’s immediate prioritymust focus on the efficient and sustained management of the ongoing pandemicand its effects on individuals, households, and firms. Protecting the lives andhealth of citizens - and thereby preventing further strains on the country’shealth system - is vital to ensure a safe resumption of economic activities anda prevention of a more protracted economic downturn.
Despite the challenges posed by the pandemic, externaleconomic conditions are improving, helping to facilitate an economic recoveryin the country. Exports are expected to jump to 11.2 percent in 2021, asignificant rebound from the -8.9 percent seen in 2020, as global demandstabilises and investments in export-related activities continue to improve./.
The revision reflects the slower pathway towardssuppression of the pandemic and the slower-than-expected vaccine rollout. Thetrajectory and pace of growth will depend on the duration and severity ofmovement restrictions, the containment of the pandemic, and the pace of thevaccine rollout, according to the “World Bank Malaysia Economic Monitor:Weathering the Surge,” launched on June 23.
The WB Group's senior economist Shakira Teh Sharifuddin saidthe country's economic recovery is being hindered by a resurgence in infectionssince mid-April, coupled with the re-imposition of the Movement Control Order (MCO)that is expected to have a significant impact on private consumption.
According to the report, Malaysia’s immediate prioritymust focus on the efficient and sustained management of the ongoing pandemicand its effects on individuals, households, and firms. Protecting the lives andhealth of citizens - and thereby preventing further strains on the country’shealth system - is vital to ensure a safe resumption of economic activities anda prevention of a more protracted economic downturn.
Despite the challenges posed by the pandemic, externaleconomic conditions are improving, helping to facilitate an economic recoveryin the country. Exports are expected to jump to 11.2 percent in 2021, asignificant rebound from the -8.9 percent seen in 2020, as global demandstabilises and investments in export-related activities continue to improve./.
VNA
