Malaysia’s GDP Dropped by 17.1 Percent in Q2 2020

art-374-01An infographic summarising Malaysia’s Q2 2020 economic performance, released on 14 August 2020 (Source: Department of Statistics Malaysia)

Malaysia’s economy has recorded a negative growth of 17.1 percent for the second quarter of 2020 – the lowest since the fourth quarter of 1998 (at -11.2 percent).

In a recent report on the country’s economic performance for the second quarter of this year by the Department of Statistics Malaysia (DOSM), growth in major economic sectors have contracted with the exception of agriculture, which saw marginal growth of 1.0 percent.

In the same period, sharp decline were recorded across all expenditure components except for Government final consumption expenditure, which rose by 2.3 percent.

DOSM cited the Malaysian Government’s implementation in containing the spread of COVID-19, particularly the Movement Control Order, Conditional Movement Control Order and Recovery Movement Control Order, as a key factor contributing to the lack of growth in the country’s economic activities in the second quarter of 2020.

The department further elaborated that Malaysia’s economic performance was also affected by weakened external sector as a result of the impact of the pandemic globally.

However, DOSM is optimistic that the implementation of stimulus packages such as Pakej Rangsangan Ekonomi Prihatin Rakyat (PRIHATIN), Pelan Jana Semula Ekonomi Negara (PENJANA) and the short-term COVID-19 economic recovery plan might be able to cushion further economic downturn, thus enabling Malaysia to improve its economy gradually in the third quarter of 2020.

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