KUALA LUMPUR (March 31): The World Bank has lowered its gross domestic product (GDP) target for Malaysia to -0.1% in 2020, against the backdrop of growing uncertainty over the duration and overall impact of the Covid-19 outbreak. This is a significant drop from its previous GDP target of 4.5%. Looking ahead, the World Bank said net exports and investments in Malaysia are expected to experience a larger contraction in 2020, while private consumption is expected to grow at a much slower pace, from 7.6% in 2019 to 1.6% in 2020. On the stimulus package, the World Bank said while it could help to mitigate the immediate impact of the outbreak, a deeper economic policy response would be needed should the health crisis deepen and result in a longer duration of economic disruption. “More targeted fiscal policy interventions would be needed to help mitigate the impact of the crisis on vulnerable households and businesses, as well as increase public health capacity.
Source: The Edge Markets March 31, 2020 02:37 UTC