According to the World Bank, Malaysia’s economy is projected to grow by 4.5 per cent in 2021 from an earlier forecast of 6.0 per cent. — Bernama file photo
KUALA LUMPUR (June 23): Malaysia’s economy is projected to grow by 4.5 per cent in 2021 from an earlier forecast of 6.0 per cent, amid a dramatic resurgence of the Covid-19 infections beginning mid-April this year, said the World Bank.
According to its Malaysia Economic Monitor: Weathering the Surge report launched today, the recent spike in infections has raised concerns about the overall capacity of Malaysia’s health system and the effects of the ongoing cycle of opening and closing the economy on households and firms.
World Bank Group senior economist for macroeconomics, trade and investment Shakira Teh Sharifuddin said the ongoing pandemic and movement restrictions would have an impact on Malaysia’s economy in the near term.
“In the short term, the focus is on containing the pandemic and saving the lives as well as livelihoods.
“Over the medium term, it is important to take the lesson learned from the pandemic and undertake strong (measures) such as rebuilding fiscal buffers and deepen as well as strengthen the social protection system,” she told a virtual media conference after the launch of Malaysia Economic Monitor ― June 2021 Edition today. ― Bernama