World Bank Predicted a Lower GDP in 2020 for Malaysia

The World Bank (WB) predicted that 2020 would be a downturn year for Malaysia with forecasted GDP growth at negative 0.1%, a significant drop from its previous GDP target of 4.5%. This substantial revision comes on the back of the gross uncertainty created by the COVID-19 and its impact on the Malaysian economy.

Expenditure by the Government of Malaysia was expected to increase on the economic stimulus package and other critical initiatives required to mitigate the economic and health impacts of the virus on the economy. The WB stated that these stimulus-related expenditures would be largely off-budget.

The WB reported that net exports and investments in the country are expected to...