Thailand
Malaysia: Economy to rebound 6% to 7.5% in 2021, says Bank Negara
KUALA LUMPUR: Bank Negara projects a domestic economic rebound of between 6% and 7.5% in 2021 although progress will be uneven and shaped by the course of several factors including the Covid-19 pandemic and vaccine rollout.
The central bank said in its 2021 outlook and policy report that other factors that play a role in the speed of recovery include the extent of external spillovers, sector-specific developments and the degree of improvement in labour market conditions.
“Amid a highly uncertain operating environment, continued and targeted policy measures will remain central in supporting growth going forward,” it said.
It noted that despite the tightening of containment measures at the start of the year, the overall impact for the year will be less than in 2020 due to fewer restrictions and a more targeted approach in containing the pandemic.
For 2021, Bank Negara expects private consumption to rebound 8% due to a gradual improvement in overall income and employment growth as well as less stringent mobility restrictions compared to 2020.
“Consumer sentiment is also expected to improve gradually as the vaccination programme is rolled out, particularly towards the second half of the year,” it said.
Meanwhile, capital spending in the private and public sectors is expected to lead to a 7.8% rebound in gross fixed capital formation.
The higher capital spending would be driven by the recovery in both structures and machinery and equipment (M&E) investments, amid improvement in global and domestic economic activity, said Bank Negara.
Source: https://www.thestar.com.my/business/business-news/2021/03/31/economy-to-rebound-6-to-75-in-2021-says-bank-negara