S&P expects stronger recovery at 7.5% this year

S&P expects stronger recovery at 7.5% this year

It says the economy was dragged down to 5.6% last year by the pandemic.

The rating agency has forecast that Malaysia would record a 5.2% GDP growth in 2022 and 4.6% in 2023.
KUALA LUMPUR:
S&P Global Ratings expects Malaysia’s economy to see a stronger recovery, recording a 7.5% growth this year after contracting 5.6% in 2020, dragged down by the Covid-19 pandemic.

Analyst Andrew Wood said this could be achieved, but cautioned that there may be some downside risk depending on the daily Covid-19 cases reported and how the government is working to contain the spread of the pandemic.

“We may revise Malaysia’s outlook to ‘stable’ from the ‘negative’ outlook over the next 24 months if the economy grows considerably faster (than we had forecast) and produces a stronger fiscal performance which will lead to a quicker improvement in government finances,” he said.

Wood was speaking at a webinar titled “S&P Global Ratings’ talks on sovereign rating trends in the Asia-Pacific amid vaccine rollout” today.

He noted that the rating agency forecast that Malaysia would record a 5.2% GDP growth in 2022 and 4.6% in 2023.

CLICK HERE FOR THE LATEST DATA ON THE COVID-19 SITUATION IN MALAYSIA

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