Malaysian economy shrinks 17 per cent in worst contraction on record
This photo shows a night view of city center in Kuala Lumpur, Malaysia on Aug. 10, 2020. (AP Photo/Vincent Thian)
KUALA LUMPUR, MALAYSIA -- Malaysia has reported its economy contracted 17 per cent in the last quarter in its worst downturn since the global financial crisis.
The central bank said the real rate of annual growth was 16.5 per cent in the April-June quarter, down from a 2 per cent contraction in the first quarter of the year.
Business shutdowns, travel restrictions and other measures to help contain outbreaks of the new coronavirus took a heavy toll.
The central bank said, however, that key indicators such as exports, industrial output and consumer spending began to bounce back in May as pandemic-related restrictions were eased.
It is forecasting a contraction for the full year of minus 3.5 per cent to minus 5.5 per cent. It expects the economy to resume expansion in 2021, growing between 5.5 per cent and 8 per cent.