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aws试用账号(www.2km.me)_GDP shrank 4.5% in 3Q but economy on recovery mode in 4Q and next year

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Bank Negara Governor Datuk Nor Shamsiah said “Progressive lifting of containment measures and continued improvements in the labour market will be key to support the recovery going forward”.

KUALA LUMPUR: Malaysia’s economy shrank by 4.5% in the third quarter ended Sept 30, 2021 compared with a 16.1% expansion in the second quarter but the economy is on a recovery trajectory in the fourth quarter and extending into 2022.

Bank Negara Malaysia said on Friday the Malaysian economy is expected to improve following the normalisation of economic activities. For 2021, the domestic economy is on track to expand by between 3% and 4%.

"Growth will be supported by the increase in economic activities as containment measures are progressively relaxed, amid continued policy support. The various relaxations of restrictions for fully vaccinated individuals including for interstate travel would also spur tourism-related activities," it said.

In addition, the strength in global demand will continue to support export growth.

Going forward into 2022, Governor Datuk Nor Shamsiah said in a statement: “Malaysia’s growth trajectory is expected to improve given resumption of economic activities, further improvement in the labour market, continued policy support and expansion in external demand.

"The progress and efficacy of vaccinations, compliance with Standard Operating Procedures (SOPs) as well as the ability to effectively contain outbreaks from any new Covid-19 variants of concern (VOCs) will be key to the expected recovery,” she said.

In 3Q21, the services sector shrank by 4.%, manufacturing 0.8%, agriculture 1.9%, mining 3.6% and construction the biggest at 20.6%

“This was largely attributable to the strict containment measures particularly in July, under Phase 1 of the National Recovery Plan (NRP)1.

“Economic activity subsequently picked up as more states transitioned into Phase 2 with less restrictive containment measures,” it said.

Bank Negara said on the supply side, all economic sectors registered a contraction.

The construction sector contracted the most due to operating capacity limits. On the expenditure side, domestic demand declined by 4.1% (2Q 2021: +12.4%), weighed down mainly by the contraction in private consumption and investment activities, while continued increase in public sector consumption spending provided support to growth.GDP3Qeconomic Activity-Nov21

Nor Shamsiah said: “Progressive lifting of containment measures and continued improvements in the labour market will be key to support the recovery going forward”.

“On a quarter-on-quarter seasonally-adjusted basis, the economy registered a decline of 3.6% (2Q 2021: -1.9%).

Economists had expected the economy to have shrunk between 2.2% on-year and 5% compared with a growth of 16.1% on-year in the second quarter.

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