However, Bank Negara was upbeat on the prospects for 2021 and it expects the economy to recover supported by better external demand and the 2021 Budget measures.
KUALA LUMPUR: The Malaysian economy contracted by 3.4% in the fourth quarter compared with a contraction of 2.6% in the third quarter mainly due to the restrictions imposed to curb the spread of the Covid-19 pandemic.
Bank Negara said the contraction in the 4Q GDP was mainly due to the imposition of the Conditional Movement Control Order (CMCO) in a number of states since mid-October.
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