COVID-19: BNM revises growth target down to 3-4 pct this year

KUALA LUMPUR: Malaysia's economic growth for 2021 is now projected to be between three and four per cent, slower than the earlier projection of between six and seven per cent, said Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus.

She said the new growth projections are lower compared to the previously-announced growth range, largely due to the re-imposition of the nationwide COVID-19 containment measures following the spike in infection rate.

"Nevertheless, the expected re-opening of the economy would support a gradual recovery in the fourth quarter this year (Q4 2021), with higher global growth and sustained policy support providing a further lift to economic growth," she told a press conference on the 'Economic and Financial Developments in Malaysia in Q2 2021' report released today.

The country's economy expanded by 16.1 per cent in Q2 2021 (Q1 2021: -0.5 per cent), mainly supported by the improvement in domestic demand and continued robust exports performance.

Nor Shamsiah noted that Malaysia's recovery is expected to accelerate further going into 2022, supported by a gradual normalisation of economic activities as well as positive spillovers from continued improvement in external demand.

-- BERNAMA