BANGKOK: Malaysia’s economy contracted by 2.7 per cent in the third quarter compared to the same period in 2019, according to official estimates released on Friday. While down on last year, the numbers suggest South-East Asia’s third-wealthiest economy is rebounding after a huge 17.1 per cent, second-quarter contraction.
Gross domestic product expanded by 18.2 per cent, measured quarter-on-quarter — which the central bank on Friday said “largely reflected the reopening of the economy from COVID-19 containment measures and better external demand conditions.” Malaysia’s Statistics Department attributed the third-quarter revival to “a rebounded performance of manufacturing.” Earlier this week the department released September data showing a fall in unemployment and the first retail sales growth in six months.
Malaysian authorities imposed a rigorously enforced lockdown during the second quarter — measures that in tandem with lockdowns elsewhere caused huge economic losses for the country’s tourism- and trade-dependent economy.
While the government has since relaxed and reimposed curbs in response to fluctuations in novel coronavirus case numbers, the government has said it will not reimpose a lockdown.
The central bank said that although a “recent resurgence of COVID-19 cases and targeted containment measures could affect the momentum of the recovery,” the economic impact will “be less severe compared to the containment measures during previous periods.” During the lockdown, Malaysia’s government sought to buttress the economy with fiscal spending pledges equating to around a fifth of GDP. — DPA
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