Wednesday, 28 Oct 2020

Malaysia's economy shrinks 17.1% in Q2, worst contraction in over 20 years

KUALA LUMPUR (REUTERS) – Malaysia’s economy shrank by 17.1 per cent in the second quarter from a year earlier, its worst contraction in over two decades, as strict coronavirus measures at home and abroad slammed consumer spending and exports, the central bank said on Friday (Aug 14).

The downturn was far worse than the 10.0 per cent decline forecast in a Reuters poll, and a sharp fall from the 0.7 per cent expansion in the first quarter.

It was the first time the economy had contracted since the global financial crisis in 2009, and marked the worst slump since the Asia financial crisis when gross domestic product shrank 11.2 per cent in the fourth quarter of 1998.

“We are likely to see a trough in the second quarter. The economy is poised for a recovery in the second half and rebound further in 2021,” Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunus said at a virtual press conference.

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