KUALA LUMPUR, November 12 – The Malaysian economy is on track to recover with full-year economic growth expected to remain positive between 3.0% and 4.0% in 2021, and grow further between 5.5 % and 6.5% in 2022, said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.
Despite headwinds throughout the third quarter of 2021 (Q3 2021), various key economic indicators point to strong recovery momentum, especially as the country enters the fourth quarter of the year (Q4 2021) and into 2022 , did he declare.
“This includes improvements in the labor market, with the unemployment rate falling to 4.5 percent in September, as well as a 24.7 percent increase in exports and an 11.6 percent increase in sales. manufacturers during the same month.
“In addition, in the third quarter of 2021, we saw an increase in business and consumer confidence, as tracked by the Malaysian Institute of Economic Research, as well as 12.8 billion ringgit of foreign direct investment (FDI ) net, bringing the total net FDI for the first nine months of this year to over 30 billion ringgit, ”he said in a statement today.
The International Monetary Fund and the World Bank forecast Malaysian economy to grow 6.0% and 5.8% in 2022 respectively.
Malaysia’s gross domestic product (GDP) grew 3.0% in the first nine months of 2021, compared to a contraction of 6.4% in the same period last year.
This despite the fact that GDP contracted 4.5% year-on-year in the third quarter of 2021, reflecting challenges caused by strict containment measures to stem the surge in new cases caused by more virulent variants of Covid- 19 worrying.
In terms of monthly GDP performance, the contraction narrowed to 1.1% in September, compared to 7.6% in July and 4.7% in August 2021, indicating an improvement in economic and social activities as that the national Covid-19 vaccination program is gaining momentum, allowing more States to move to phase 4 of the national recovery plan.
Going forward, Tengku Zafrul said economic growth will be mainly driven by an expansionary 2022 budget, normalization of economic and social activities based on high vaccination rates, resumption of high multiplier projects and strong external demand. , especially from major trading partners.
“The government will continue to protect lives and livelihoods from the threat of Covid-19 while ensuring that the country’s medium and long-term economic growth prospects remain strong.
“The government is committed to reacting strategically, proactively and decisively, while trying to limit the long-term economic consequences of the Covid-19 pandemic,” he added. – Bernama