Malaysia Lowers Full-Year Economic Growth Forecast to 4%

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 11th (local time) that Malaysia has downgraded its economic growth forecast for this year to 4.0% due to a nationwide lockdown caused by the resurgence of COVID-19.

The Malaysian Finance Minister stated that the economic growth forecast for this year would be lowered from the previous estimate as movement restrictions continue due to the spread of COVID-19.

In an interview with Bloomberg TV on the same day, Finance Minister Tengku Zafrul Aziz expressed optimism that the current surge in COVID-19 cases would soon be contained, but said that economic growth would inevitably slow compared to earlier expectations.

Minister Aziz said, "The economic growth forecast for this year is being revised to a lower level," adding, "The exact figure will be announced soon, and it is expected to be around 4%."

Previously, the Malaysian government had projected economic growth of 6-7% this year after recording a -5.6% growth rate last year, but the second full lockdown has made it necessary to revise the forecast.

In Malaysia, an Islamic country, confirmed cases rapidly increased around the largest holiday celebrating the end of Ramadan (Islamic fasting month) in mid-May, leading to a nationwide lockdown for two weeks last month.

Due to the lockdown measures, economic activity has been weaker than expected, and the government estimates that daily economic losses amount to $239 million.