As COVID-19 restrictions eased and global demand rose, Malaysia’s GDP rebounded, growing by 3.1% in 2021 following a 5.6% contraction in 2020. Although the delta COVID-19 variant and rising prices dampened demand at the beginning of the year, all components had recovered strongly by the fourth quarter. Private consumption expanded by 1.9%, public consumption by 6.6%, private investment by 2.6%, and exports of goods and services by 15.9%. Supply-side growth was driven by manufacturing, which grew by 9.5% in 2021 due to relaxed restrictions and a robust recovery in global exports. Unemployment eased from 4.9% at the start of 2021 to 4.2% by the end of the year. The central bank continued its accommodative stance with a 1.75% policy rate. GDP is forecast to accelerate to 6.0% in 2022 as the recovery continues, before slowing to 5.4% in 2023.
|Composite Stock Price Index 1||1.0 (Aug23)||1.0||1.0|
|Broad Money Growth 2||3.5 (Jul23)||3.5||3.6|
|Headline Inflation Rate 3||2.0 (Jul23)||2.4||4.4|
|Industrial/ Manufacturing Production Growth Rate 3||-2.2 (Jun23)||4.8||11.9|
|Merchandise Export Growth 3||-15.8 (Jul23)||-15.8||-18.4|
|Exchange Rate Index 4||122.9 (Aug23)||122.3||119.0|
|1 Monthly average, local index.|
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
|Source: Bloomberg LP; CEIC database; Department of Statistics of Malaysia.|
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