Government fiscal stimulus and liquidity support, equal in total to 20 per cent of GDP, is expected to boost domestic demand, but weak labour market conditions under persistent layoffs and pay cuts will still dampen consumer spending, it said.
KUALA LUMPUR: The Asian Development Bank (ADB) has maintained its gross domestic product (GDP) forecast of 6.5 per cent for Malaysia next year in its September update, but downgraded 2020 growth rate to -5 per cent from -4 per cent previously.
"The economy will continue to be dragged down by the adverse effects of the pandemic on consumption, exports, and investment. Measures to contain the spread of the virus by restricting travel and business activity weigh on household spending,” it said.
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