Malaysian economy in the second quarter of 2020 it was recorded at minus-17.1%. This is the country’s first contraction since the global financial crisis in 2009.
Slump in the Malaysian economy this is also due to the impact of the COVID-19 pandemic. That way Malaysia is also threatened to enter the brink of recession.
Launching Reuters on Friday (14/8/2020) The Malaysian central bank said the country’s gross domestic product (GDP) shrank -17.1% in the second quarter of 2020 compared to the previous quarter.
Malaysia’s economic contraction is also the worst in more than 20 years. This contraction is also much deeper than opinion polls predict Reuters which estimates the Malaysian economy -10%.
The decline occurred when the government imposed strict restrictions on social and business activities during the second quarter of 2020. The goal is to prevent the transmission of COVID-19, which has infected more than 9,000 people in Malaysia.
The economic contraction is also a the worst economic downturn in Malaysia since the Asian financial crisis in 1998 and marks a sharp decline from the 0.7% year-on-year growth seen in the first quarter. The economy has slumped across Southeast Asia due to the impact of the coronavirus, even Singapore and the Philippines are now in recession.
The Malaysian central bank has also cut its economic growth forecast for this year, which is expected to contract between -3.5% and -5.5% in 2020. Previously, the Malaysian central bank predicted a contraction of only -2% this year in the worst case scenario.
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(the / hns)