Malaysia Economic Outlook
November 17, 2020Following Q2’s record fall in GDP, activity contracted at a much softer pace in Q3 as Covid-19 restrictions were eased in early June. Exports shrank at a milder pace thanks to increased foreign demand, mainly for electronics, while domestic demand contracted less steeply, with consumer and capital spending both falling at a softer rate. Turning to Q4, incoming data suggests that the recovery might be losing steam. The manufacturing PMI slid further into contractionary territory in October, reflecting moderating growth in new orders and output. This, coupled with the reinstatement of targeted lockdowns in October, bodes ill for private activity. Lastly, on 6 November, the government presented its draft 2021 budget of MYR 322.5 billion (about USD 78 billion)—the largest in the country’s history—based on a 6.5%–7.5% GDP growth rate and a lower fiscal deficit of 5.4% of GDP.
Malaysia Economic GrowthThe economy is seen contracting sharply this year, before bouncing back in 2021 on the back of firming consumer spending, stronger construction activity and rebounding exports, as demand from key trading partners recovers. That said, the uncertain course of the pandemic clouds the outlook. FocusEconomics panelists see the economy growing 6.6% in 2021, which is unchanged from last month’s forecast. In 2022, the panel sees the economy expanding 4.6%.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||3.32||0.15 %||Dec 31|
|Exchange Rate||4.09||0.0 %||Jan 01|
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Malaysia Economic News
February 11, 2021
GDP slid 3.4% year-on-year in the final quarter of 2020, falling at a sharper rate than Q3’s 2.6% drop and undershooting market analysts’ expectations of a 3.1% contraction.
February 8, 2021
Industrial output increased 1.7% compared to the same month of the previous year in December 2020, bouncing back from November's 2.2% decrease and marking the best result in ten months.
February 4, 2021
Merchandise exports increased 13.0% in annual and USD terms in December, above November’s 5.3% increase and rising for the fourth successive month.
February 1, 2021
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, edged down to 48.9 in January from December’s 49.1.
January 22, 2021
Consumer prices rose 0.50% on a seasonally-adjusted basis over the previous month in December, contrasting November’s 0.17% decline.