MARC Forecasts Malaysia’s Economy to Contract in 2020 with a Rebound Expected in 2021

Malaysian Rating Corporation (MARC) has released its expectations on Malaysia’s economic performance anticipating a contraction in the Gross Domestic Product (GDP) by 1.5-3.0% for 2020, with growth expected to recover to 6.2-6.7% off the low base in 2020.

MARC’s expectations for 2020 are based on weak performance in the first quarter of 2020 (Q1 2020), with GDP forecast to decelerate further in the current quarter (Q2 2020), due to the effects of the on-going COVID-19 pandemic. The Q2 2020 forecast reflects the anticipated decline in private consumption, which is expected to further weaken as the full impact of the movement control order will be reflected this quarter.

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