World Bank lowers Malaysia GDP, sees it shrinking by 3.1%

The World Bank said in the near term, Malaysia’s fiscal strategy should be reprioritised to create additional policy space.- pic by World Bank

KUALA LUMPUR: The World Bank has downgraded its forecast for Malaysia’s economy this year and expects GDP to contract by 3.1% from its earlier expectations of -0.1% in April while it expects the near-term outlook to be uncertain due to the Covid-19 pandemic.

It said on Thursday that in 1Q, 2020, growth slowed to just 0.7% with efforts to flatten the curve of the pandemic through a series of movement control orders (MCO) and with deep uncertainty regarding growth prospects severely constraining economic activity.