KUALA LUMPUR: The Asian Development Bank (ADB) has revised downwards the growth forecast for Malaysia to 5.5% for 2021 from its April projection of a 6% growth due to the fallout from restrictions imposed to curb the spread of the Covid-19 pandemic.
The Manila-based ADB said on Tuesday in 1q, Malaysia posted a smaller GDP decline of 0.5% year on year with improvement in domestic demand and exports, particularly of electronics and electrical products.
“However, an extension of lockdown measures imposed in 2Q, 2021 is expected to weaken domestic demand again.
“Business conditions for manufacturers deteriorated sharply in June under stricter containment measures.
“Greater downside risks are likely as rising infections show no sign of abating. The GDP forecast for 2022 is kept at 5.7%,” it said in the report.
ADB had also said developing Asia's economic growth this year will be slightly lower than previously projected due to the resurgence of COVID-19 infections in countries.
Developing Asia's economic growth this year will be slightly lower than previously projected, the Manila-based Asian Development Bank said on Tuesday, citing the resurgence of Covid-19 infections in countries.
The ADB said recovery was underway in "developing Asia", referring to the bank's 46 members, including China and India, but growth was revised down to 7.2% from 7.3% projected in its Asian Development Outlook (ADO) report released in April.
Among the highlights, it said recovery is under way in developing Asia, but with the growth projection for this year revised down slightly from 7.3% in Asian Development Outlook 2021 in April to 7.2% following renewed virus outbreaks in some economies.
* The projection for 2022 was upgraded from 5.3% to 5.4%. East Asia’s 2021 growth forecast is raised from 7.4% to 7.5%, reflecting a strong first quarter.
* Expansion in China is still projected at 8.1% in 2021 and 5.5% in 2022 as favourable domestic and external trends align with April forecasts.
* In South Asia, new waves of infections prompt a lower growth forecast of 8.9% for 2021, followed by growth at 7.0% in 2022. India’s 2021 growth projection is downgraded from 11.0% in April to 10.0%. followed by 7.5% growth in 2022.
* The forecast for Southeast Asian growth in 2021 is downgraded from 4.4% to 4.0% as some countries reimpose pandemic restrictions, followed by 5.2% growth in 2022.
* Central Asia’s growth prospects for 2021 are revised up from 3.4% to 3.6%.
* The Pacific forecast, by contrast, is slashed from 1.4% to 0.3% as Fiji tightens containment measures.
* Regional inflation is expected to remain benign, the forecast revised up marginally for 2021 from 2.3% to 2.4% but unchanged at 2.7% for 2022.