Malaysia’s 2020 GDP Estimate Revised Down Further as Third Wave of COVID-19 Hits: Fitch Solutions

In a statement released on the 17th of November 2020, Fitch Solutions (Fitch) lowered its 2020 real gross domestic product (GDP) estimate for Malaysia to -5.0% YoY (from -4.5% YoY, previously), as the third-wave of COVID-19 infections posed challenges to the country’s on-going economic recovery.

According to Fitch, domestic demand is anticipated to remain subdued through the remainder of 2020, driven by improving exports to recovering economies, off-setting weaker imports year-after-year.

In response to the third-wave of COVID-19 cases, the Government of Malaysia has re-imposed localised lockdowns, with Fitch expecting a wider and more stringent lockdown to be imposed if the...