Malaysia’s 2020 Gross Domestic Product Forecast Revised Down Further: World Bank

The World Bank’s East Asia and Pacific Economic Update, October 2020 has reported a change in the gross domestic product (GDP) forecast for Malaysia, projecting a contraction of 4.9% for 2020, higher than the World Bank’s previous expectation of 3.1%. The World Bank’s revised forecast for Malaysia is in line with the 2020 GDP forecast by Bank Negara Malaysia (BNM), with BNM expecting a contraction of between 3.5-5.5% for 2020.

According to the report, the change in estimate came about following a stronger than expected GDP contraction in the second quarter of 2020, at 17.1%, caused mainly due to a decline in domestic demand resulting from the imposed movement control order, coupled with weak external conditions. The World...