Economy to contract 3.5% to 5.5% this year, rebound in 2021

In a statement issued on Friday, it said the green shoots of economy recovery have already been seen in the current quarter after the severe contraction of 17.1% in the second quarter ended June 30.

KUALA LUMPUR: Bank Negara Malaysia lowered its forecast for the economy this year due to the impact of the Covid-19 pandemic and it expected negative growth of between 3.5% and 5.5% this year before rebounding 5.5% to 8% next year.

In a statement issued on Friday, it said the green shoots of economy recovery have already been seen in the current quarter after the severe contraction of 17.1% in the second quarter ended June 30. The 2Q contraction was the worst since the fourth quarter of 1998 during the Asian Financial Crisis.