Malaysia: Fitch Solution lowers Malaysia GDP forecast

• Nov 17, 2020

KUALA LUMPUR: Fitch Solutions has downgraded its growth forecast for Malaysia this year to -5% from -4.5% previously, according to its client note on Monday.

“Downward revision was prompted by the worsening third wave of coronavirus infections, posing risks to the ongoing growth recovery, ” it said.

Domestic demand and investment are likely to remain subdued given the persistence of heightened economic uncertainty.

Net exports will remain as the key positive growth contributor, mainly through depressed import demand.

Raises growth forecast for 2021 to 11.5% from 6.3% previously, mainly due to low base effects in 2020, especially in the second quarter. – Bloomberg