GDP slows down to 0.7% in 1Q, Bank Negara sees contraction in 2Q

“The Malaysian economy is expected to contract in the second quarter. This reflects the longer duration of containment measures both globally and domestically, " Bank Negara said.

KUALA LUMPUR: Malaysia's economy slowed down to 0.7% in the first quarter as it was significantly impacted by the measures to contain the Covid-19 pandemic but Bank Negara Malaysia expects the adverse effects to be seen more in the second quarter.

The slower growth was a surprise as economists were expecting a 1.5% decline, based on a median forecast of 12 economists polled by Reuters.