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KUALA LUMPUR: The sudden surge in Covid-19 cases over the past months and the movement restrictions that were reintroduced are expected to weigh on Malaysia’s economy, slowing the recovery compared with what was initially expected.
Against this backdrop, the World Bank has lowered its projection on Malaysia’s economic growth by 1.5 percentage points to 4.5% in 2021 from an earlier forecast of 6%.
The international financial institution said the revision reflected a slower pathway towards suppressing the pandemic and the slower-than-expected vaccine rollout.
“The trajectory and pace of growth will depend on the duration and severity of movement restrictions, the containment of the pandemic, and the pace of the vaccine rollout.