RHB revises Malaysia’s GDP growth forecast in 2021 down to 6.3%

10 Dec 2020

RHB Banking Group has revised its 2021 growth forecast for Malaysia’s economy downwards to 6.3% from 7% previously.

This comes as it expects the country’s economic recovery to remain challenging in the next few quarters due to the prolonged COVID-19 pandemic, reported The Edge.

Dr Sailesh Kumar Jha, Chief Economist of RHB, said RHB’s revised growth forecast for Malaysia GDP next year is lower than the 6.8% Bloomberg consensus forecast.

He made the statement at the launch of RHB’s “Path Finder — Separate the Noise from Reality” report.

Is Now A Good Time To Invest In Properties In Malaysia? 

On the domestic front, the 60-page report noted that Budget 2021 indicates the government’s continued support for public investment and private consumption.

“Nevertheless, while the fiscal and financial support could offset part of the [GDP] decline, the dampening effect of the pandemic may still persist,” wrote RHB Economist Ahmad Nazmi Idrus.

With this, he expects Bank Negara Malaysia to keep the overnight policy rate at 1.75% into next year.

“The possibility of more stringent social measures is negative for growth outlook ahead. However, support in the form of large-scale fiscal spending alongside financial backing should be substantial,” said Ahmad Nazmi.


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