The International Monetary Fund Lowers its 2021 Projections for Malaysia’s Economic Growth

Malaysia’s gross domestic product (GDP) is now forecast to increase by 7.0% year-on-year in 2021, according to the latest estimates from the International Monetary Fund (IMF). In October 2020, the IMF had stated Malaysia’s 2021 real GDP growth rate expectation at 7.8% YoY. The IMF noted that the projected economic growth would be supported by domestic as well as external demand, citing recovery to be uneven across sectors.

Growth into 2021 will continue to be driven by robust pandemic-led demand for personal protective equipment and electronics, stated the IMF, adding that this anticipated growth could be accelerated by a quicker-than-expected availability of the COVID-19 vaccine.

On the downside, the IMF noted that Malaysia’s recovery could be hamper...