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.
Latest | Month-Ago | Year-Ago | |
---|---|---|---|
Composite Stock Price Index 1 | 1.0 (Oct23) | 1.0 | 1.0 |
Broad Money Growth 2 | 2.9 (Sep23) | 2.9 | 2.9 |
Headline Inflation Rate 3 | 2.0 (Sep23) | 2.0 | 4.5 |
Industrial/ Manufacturing Production Growth Rate 3 | -0.5 (Sep23) | -0.3 | 10.8 |
Merchandise Export Growth 3 | -16.2 (Sep23) | -16.2 | -21.3 |
Exchange Rate Index 4 | 126.5 (Oct23) | 124.8 | 125.2 |
1 Monthly average, local index. 2 %. 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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