Govt forecasts 5.5% to 8% economic growth in 2021

KUALA LUMPUR – Putrajaya has predicted an economic growth of between 5.5% and 8% next year based on indicators in August and September.

Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed told the Dewan Rakyat this morning that Putrajaya’s confidence in its forecast stems from some sectors’ improved performance in the second half of 2020.

“The International Monetary Fund said the economic situation now is the worst in the world since World War 2.

“Malaysia was not left out. In the first half (of the year), our gross domestic product shrank.

“However, that is temporary, and we predict that we will recover next year. The economic indicators in August and September showed a better performance than the first half.

“In September, our export sector saw a 13.6% increase, retail and wholesale were up by 2.5%, and passenger vehicles went up 8%.

“The current economic growth is expected to shrink between 5.5% and 3.5% this year, but will increase to around 5.5% to 8% next year.”

He said the third Covid-19 wave has adversely affected the nation’s economy starting last month.

In a reply to a supplementary question from Kulim Bandar Baharu MP Datuk Seri Saifuddin Nasution Ismail of PKR, Mustapa said Budget 2021 will also address a host of economic issues. – The Vibes, November 2, 2020