Fitch Solutions Revises Malaysia’s 2021 GDP Growth Forecast to 1.5% Amid Improvement in COVID-19 Situation

Malaysia’s Gross Domestic Product (GDP) growth forecast for 2021 has been increased from 0% to 1.5% by Fitch Solutions with the improvement in the COVID-19 situation in the country.

Why it Matters?

The research unit of the Fitch Group, in a brief commentary, said that the earlier forecast of 0% growth for 2021 was based on the not lifting of COVID-19 restrictions until cases fell below 4000 per day. However, the considerable decrease in daily cases with a continuing downward trend and the country partially reopening for international travel has resulted in the upward revision of the forecast. Further, if the Government of Malaysia reopens the country as promised by the end of October, it is expected to provide an upward thrust to the retail and s...