Malaysia’s economy shrinks most since 1998 Asia crisis
Saturday, 08 15 2020, Category: Economy, Country: Malaysia
Malaysia’s economy contracted by the most since the Asian financial crisis more than two decades ago, with the central bank sharply downgrading its outlook for this year.
Gross domestic product shrank 17.1% in the second quarter compared to a year earlier, its worst showing since the fourth quarter of 1998, the central bank said Friday. That compared to the median forecast of a 10.9% contraction in a Bloomberg survey of economists.
The data show the severe knock the trade-reliant economy has taken during the Covid-19 outbreak. Exports plunged because of the disruption to supply chains, while consumer spending slumped amid an extended lockdown. The central bank now expects the economy to contract 3.5% to 5.5% this year, compared with a previous growth range of 0.5% to -2%.
“The decline in output was massive,” said Mohd Afzanizam Abdul Rashid, chief economist at Bank Islam Malaysia Bhd. “It clearly shows that the pandemic has resulted the economy to be at a standstill.”