New Straits Times

Economic recovery seen picking up

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KUALA LUMPUR: There is a good chance of Malaysia’s economic recovery picking up speed, from what is likely to be a subpar 3.2 per cent growth this year to a more encouragin­g five per cent next year, said OCBC Treasury Research.

This is higher than its previous forecast of 4.3 per cent, in part due to the deeper base effect from this year.

OCBC said this year saw the Malaysian economy being challenged on multiple fronts.

As evidenced by the considerab­le miss in the third quarter gross domestic product, the economic recovery remains fragile.

“Looking ahead, there are some glimmers of hope. For one, the high vaccinatio­n rate should allow for a more sustainabl­e economic reopening.

“While the government has telegraphe­d a 5.5 to 6.5 per cent growth outlook for next year, we are more conservati­ve partly because we see a more contained recovery in private consumptio­n, as households try to rebuild their savings that have been depleted considerab­ly during the pandemic bouts,” it said in a note yesterday.

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