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Malaysia to see strong recovery in 2022: Fitch Solutions

  • Sun Online Desk
  • 15th November, 2021 03:04:38 PM
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Fitch Solutions Country Risk and Industry Research said Monday it still forecast Malaysia's real gross domestic product (GDP) growth of 1.5 percent and 5.5 percent in 2021 and 2022, respectively, following the release of the country's third quarter growth.

The Fitch group unit said in a note, while Malaysia's economy contracted 3.6 percent on a quarter-on-quarter basis, tipping the country into a technical recession, it expects the technical recession to end in the fourth quarter, which should post positive growth on the back of broad-based, lifting of restrictions for fully vaccinated individuals, Xinhua reported.

In addition to the fourth quarter recovery, the research house said the country's economy should be much more resilient against COVID-19 in 2022, given higher vaccination rates and the improved resistance among the population conferred by the severe wave of infections experienced in 2021.

Net exports should also contribute positively once more to headline growth, despite mixed risks, it added.