KUALA LUMPUR (Oct 7): The Socio-Economic Research Centre (SERC) said on Thursday (Oct 7) Malaysia's economy, as measured by gross domestic product (GDP), may grow in the fourth quarter of 2021 (4Q21) after a subdued 3Q21, which saw a decline or sharp pullback in growth for the country's key economic indicators due to Covid-19-driven movement restrictions to curb the spread of the pandemic.
SERC executive director Lee Heng Guie said SERC has noted the key economic indicators comprised the nation's exports, industrial output, wholesale and retail sales, bank loan demand and consumer spending performance for 3Q21 during the months of July and August.
"Indications are that overall economic output, as measured by the GDP, would (have been) subdued or declined in 3Q21 before recovering to positive decent growth in 4Q21.
"While the increasing level of (Covid-19) vaccinations will support the normalcy of activities, the virus risk (is) still lurking to threaten life and the economy, hence, continued pandemic mitigation and surveillance, including SOPs (standard operating procedures), are a must to ensure a sustained revival in economic and business conditions," Lee said in a virtual media briefing on Thursday (Oct 7).
He said SERC has maintained its Malaysia full-year GDP forecast for 2021 at 4%.
In August 2021, Bank Negara Malaysia (BNM) said in a statement that the Malaysian economy was projected to expand between 3% and 4% in 2021.
In February 2021, BNM said in a statement the country's economy contracted 5.6% in 2020.