IMF expects Malaysia’s GDP to increase 7.8% next year

 

The IMF says Asian advanced economies are projected to have somewhat more moderate downturns than those of Europe. (AFP pic)

KUALA LUMPUR: The International Monetary Fund (IMF) expects Malaysia’s real gross domestic product (GDP) to rise by 7.8% next year.

However, the IMF has revised its Malaysia 2020 GDP forecast to a 6% year-on-year contraction from the previously estimated 3.8% contraction.

In its October 2020 World Economic Outlook (WEO) update released today, the IMF said Asian advanced economies are projected to have somewhat more moderate downturns than those of Europe.

This is in light of the more contained pandemic which is also reflected in smaller GDP declines during the first half of 2020.

Touching on the forex exchange, the IMF pointed out that the currencies of commodity exporters among advanced economies strengthened as commodity prices firmed.

“Most emerging market currencies recovered between April and June, after the severe pressures during the market turmoil in March.

“Since then, the Chinese renminbi has strengthened and the currencies of other Asian emerging market economies have generally remained stable in real effective terms,” it said. - FMT