Malaysia’s GDP contracts 4.5 pct in Q3 on strict COVID-19 containment measures
KUALA LUMPUR, Nov. 12– Malaysia’s gross domestic product contracted by 4.5 percent year on year in the third quarter of 2021, following strict containment measures implemented by the government to curb COVID-19, official data showed Friday. Malaysia’s GDP rose 16.1 percent year on year in the second quarter. On a quarter-on-quarter seasonally-adjusted…
KUALA LUMPUR, Nov. 12 (Xinhua) — Malaysia’s gross domestic product (GDP) contracted by 4.5 percent year on year in the third quarter of 2021, following strict containment measures implemented by the government to curb COVID-19, official data showed Friday.
Bank Negara Malaysia (BNM), the country’s central bank, said in a statement that all economic sectors registered a contraction in the third quarter, with the construction sector shrinking the most due to operating capacity limits.
On the expenditure side, it said domestic demand declined by 4.1 percent year on year due to the contraction in private consumption and investment activities.
Malaysia’s GDP rose 16.1 percent year on year in the second quarter.
On a quarter-on-quarter seasonally-adjusted basis, Malaysia’s economy registered a decline of 3.6 percent.
BNM governor Nor Shamsiah said progressive lifting of containment measures and continued improvements in the labor market will be key to support the country’s recovery going forward.
According to BNM, the domestic economy, supported by the increase in economic activities amid relaxed containment measures, is on track to expand by 3 percent to 4 percent this year.
“The various relaxations of restrictions for fully vaccinated individuals including for interstate travel would also spur tourism-related activities,” it said, adding that the strength in global demand will continue to support export growth.
In 2022, Nor Shamsiah expects Malaysia’s growth trajectory to improve given the resumption of economic activities, further improvement in the labor market, continued policy support and expansion in external demand.
“The progress and efficacy of vaccinations, compliance with Standard Operating Procedures as well as the ability to effectively contain outbreaks from any new COVID-19 variants of concern will be key to the expected recovery,” she said. Enditem