World Bank Revises Down Malaysia’s Economic Growth Forecast for 2021; No GDP Contraction Anticipated 

On the 23rd of June 2021, the World Bank cut its 2021 growth projection for Malaysia to 4.5%, from 6.0% estimated in March 2021. This was owing to COVID-19, the resultant movement restrictions and their effects on the economy. Of the main concerns were the flare-up in COVID-19 cases and the slower-than-expected administering of vaccinations.

Why it Matters?

Despite the downward revision, Malaysia is expected to register positive economic growth in 2021, according to a World Bank Group Senior Economist, Shakira Teh Sharifuddin. Three broad factors will determine the pace of Malaysia’s economic recovery – that is the severity and length of movement restrictions, containment of the pandemic as well as the pace of the country’s vaccine...