Asian Development Bank: Malaysia’s Economic Growth to Decline 4% in 2020 with a Recovery Expected in 2021

According to the Asian Development Bank (ADB)’s Asian Development Outlook 2020 (ADO 2020), economic growth in Malaysia is predicted to decline 4% year-over-year (YoY) in 2020. This is in line with ADB’s expectation of a 2.7% YoY contraction in economic growth across the South-east Asian region, amidst broad declines in consumption, trade and investment.

According to the ADO 2020, Malaysia, having one of the more open economies in South-east Asia, has been hit by falling global trade and demand. Added to this, tight travel restrictions, and quarantine requirements have negatively affected key sectors of the economy, such as aviation, hospitality and retail.

Economic growt...