Coronavirus infects global economy and markets

Malaysia, being a trading economy, is vulnerable to shocks. Unlike in 2003 where the economy grew 5.8% despite the outbreak of SARS supported by robust external demand and a strong private sector, today, external uncertainties and domestic challenges added with the coronavirus outbreak point to some downside risks for the economy.

Global uncertainties had started to ease in 2020 with the fear of recession fading.

It came about after the United States and China signed a trade agreement that led to a vague pause in a trade war. The threat of open hostilities between the US and Iran returned to a deadlock. Although Europe remained stagnant, Germany escaped the recession threat.