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KUALA LUMPUR, Feb 11 — The country’s total output for 2020 contracted by 5.6 per cent, Bank Negara Malaysia and the Department of Statistics announced today, higher than the Ministry of Finance’s initial estimate of -4.5 per cent.
This drop, compared to the gross domestic product (GDP) of 2019, was the biggest decline since the 1998 Asian Financial Crisis, as negative growth in the fourth quarter of 2020 affected by Covid-19 and the movement control order (MCO) continues to weigh on the county’s recovery.
GDP growth in the last three months of 2020 also stayed in the negative zone, at -3.4 per cent compared to the previous quarter, albeit with the slight improvement aided by the loosening of movement restrictions. All but one key economic sector posted growth in the period.
Manufacturing output, although slightly lower than the previous quarter, grew 3 per cent underpinned by robust external demand for electric and electronic products.
Services, agriculture, mining, and construction all fared poorer for the October-December period, with mining and construction sectors posting double digit negative growth at -10.6 and -13.9 per cent respectively, against -6.8 and -12.4 per cent from the months before.
DoSM chief statistician Datuk Seri Mohd Uzir Mahidin said the poor data was likely the effect of a third wave of Covid-19 infections that started October, which kept demand subdued as consumers avoided spending.
MORE TO COME