Malaysia’s GDP to shrink 6% this year, rebound next year

“Malaysia’s exports would benefit from improving Chinese import demand and the electronics cycle. Nonetheless, the speed of its recovery will likely slow given current sluggish global demand, high unemployment and weak investment," said the report.

KUALA LUMPUR: Malaysia’s economy is forecast to shrink by 6% this year due to the impact of the Covid-19 pandemic, but it will rebound 6.6% next year, according to the Global Economic Outlook report from Oxford Economics.

The report issued on Monday said although the nationwide movement control order in Malaysia compounded the economic damage in 2Q, the payoff has been apparent, with the pandemic situation currently in hand, which will aid the economy in regaining its footing.