BNM: Malaysia GDP Remains On Track For 6% To 7.5% Growth In 2021, Despite 0.5% Drop In Q1

May 12, 2021

BNM_ Malaysia GDP Remains On Track For 6% To 7.5% Growth In 2021, Despite 0.5% Drop In Q1

While Malaysia’s gross domestic product (GDP) declined by 0.5% in the first quarter of 2021 (Q1 2021), it remained on track to hit the 6% to 7.5% growth forecasted by Bank Negara Malaysia (BNM) for this year.

BNM Governor Datuk Nor Shamsiah Mohd Yunus said the growth performance was mainly supported by the “improvement in domestic demand and robust exports performance, particularly for electric & electronic products”, reported The Sun Daily.

Overall, Nor Shamsiah expects the growth recovery to benefit from better global demand, continued policy support and increased public and private sector expenditure. The recovery will also be seen in the labour market conditions, hiring activity forecasted to increase gradually.

What Will Happen To Your Home Loan If The Economy Deflates Or Inflates? Read This Article To Find Out.

Looking ahead, the governor believes the higher production from new and existing manufacturing facilities as well as oil and gas facilities would provide further impetus for growth.

The roll-out of the COVID-19 vaccine is also expected to lift sentiments as well as contribute to economic recovery. The governor, however, acknowledge that the pace of recovery across economic sectors will be uneven.

“Going forward, Malaysia is well positioned to continue benefiting from stronger global economic and trade activities. While the growth outlook continues to be shaped by developments surrounding the pandemic, the implementation of containment measures which are mainly aimed at curbing social activities and allow almost all economic sectors to operate, would minimise the impact on economic activity,” said Nor Shamsiah during the central bank’s virtual briefing on the country’s Q1 2021 GDP performance.

With almost all economic sectors allowed to operate, MCO 3.0’s impact on growth will likely be less severe compared with last year’s MCO 1.0.

Nor Shamsiah reiterated that the central bank’s GDP forecast range for this year is mindful of the uncertainties brought about by the pandemic, such as the potential resurgence in COVID-19 cases and stricter containment measures. In fact, this uncertainty is evident in BNM’s wide forecast range of 150 bps, between 6% and 7.5%.

“Furthermore, the assumption behind the growth forecast was also conservative, as it had projected no interstate travel until the end of this year and Malaysia’s international borders will remain closed to leisure travel throughout 2021,” she explained as quoted by The Sun Daily.

 

Have a question about the property market? Post them on AskGuru and let our experts help you!

POST COMMENT

You may also like these articles

BNM May Cut OPR By 25 Bps In March, Says RHB Research

Bank Negara Malaysia (BNM) may slash the Overnight Policy Rate (OPR) by another 25 basis points (bps) at the upcoming policy meeting on 4 March, according to RHB Research.This comes as the research ho

Continue ReadingFebruary 15, 2021

Economists Sees BNM Keeping OPR Unchanged At 1.75%

Economists expect Bank Negara Malaysia (BNM) to keep the overnight policy rate (OPR) unchanged at 1.75% in the second Monetary Policy Committee meeting for this year, which will be held on 4 March, am

Continue ReadingMarch 2, 2021

BNM Keeps OPR Unchanged At 1.75%

Bank Negara Malaysia (BNM) has kept the Overnight Policy Rate (OPR) unchanged at 1.75% as Malaysia’s latest indicators point to continued consumer spending and improvements in external demand.What I

Continue ReadingMarch 5, 2021

Malaysia’s Unsold Properties Still At Elevated Level, Says BNM

Unsold properties in Malaysia remains at an elevated level as at end of 2020 even as transaction volumes within the housing market rebounded to a pace comparable to the average quarterly increase seen

Continue ReadingApril 1, 2021

HSBC Expects BNM To Maintain Opr At 1.75%

HSBC Global Research does not expect Bank Negara Malaysia (BNM) to slash its Overnight Policy Rate (OPR), which currently stands at 1.75% in its third Monetary Policy Committee meeting this Thursday (

Continue ReadingMay 4, 2021

Feedback