The World Bank has revised Malaysia’s economic growth projection to 3.3 percent in 2021, while forecasting a higher economic growth of 5.8 percent in 2022 and 4.5 percent in 2023 for Malaysia.

Illustrative image (Photo: Reuters)

Speaking at a virtual press conference on the launch of the World Bank’s East Asia and Pacific Economic Update October 2021 report on September 28, the bank has lowered its 2021 economic growth forecasts for all economies in the Asia-Pacific region, except China.

In particular, the World Bank has lowered Malaysia's economic growth forecast for 2021 from 4.5 percent in June 2021 to 3.3 percent, mainly due to the COVID-19 situation in the Asia-Pacific deteriorates, affecting the economic recovery process.

This is the second time in a row in 2021 that the bank has revised down its economic growth forecast for Malaysia. In March 2021, it lowered its economic growth forecast for Malaysia in 2021 from 6.7 percent to 6 percent.

The WB's forecast for Malaysia's economic growth in 2021 is similar to that of the Central Bank of Malaysia (BNM). On August 13, BNM also lowered Malaysia's 2021 economic growth forecast from the previous 6-7.5 percent to 3-4 percent.

BNM believes that in the short term, Malaysia's economic situation will be significantly affected by the epidemic. However, the World Bank believes that Malaysia's economy in 2022 will recover and has revised its economic growth forecast from the previous 4.2 percent to 5.8 percent.

Source: VNA