Malaysian Economy to Return to Pre-Pandemic Growth Levels in the Medium Term: World Bank

The latest edition of the World Bank Malaysia Economic Monitor launched on the 17th of December 2020 expects Malaysia’s gross domestic product (GDP) to increase 6.7% year-on-year (YoY) in 2021, recovering from an expected contraction of 5.8% YoY in 2020.

According to the report, the containment of the third wave of COVID-19 cases, together with the efficient roll-out and distribution of the COVID-19 vaccine is likely to lead to greater investor confidence, and a faster-than-anticipated recovery in consumer demand. This in turn, is expected to lead to a stronger recovery in economic activity in Malaysia in 2021.

The report stated that the Malaysian economy is showing signs of recovery, having posted a smaller economic contraction of 2.7% YoY in the third quarter of...