The International Monetary Fund (IMF) expected Malaysia’s economy would contract by 1.7% in 2020 but will soar by 7.8% next year. The growth would be the fastest among the ASEAN-5 countries, which this year would likely contract by 0.6%.
The Fund estimated other ASEAN-5 countries would also rebound next year after contracting by the combined 7.8% this year. Indonesia would likely expand by 8.2% in 2021, Thailand by 6.1%, the Philippines by 7.6%, and Vietnam by 7%.
The global economic growth was also predicted to rebound by 5.8% next year from a contraction of 3% in 2020. This year, the world’s advanced economy to likely grow by 4.5% while the emerging market and developing economy nations are likely to grow by 6.6%.
The IMF said that the rebound next year would depend on the conditions related to the pandemic in the second half of this year, even after significant economic policies have been taken all over the world which are likely effective in avoiding widespread firm bankruptcies, extended job losses, and system-wide financial strains.
