MoF likely to revise this year’s GDP forecast to 4pc as new Covid wave dents recovery
KUALA LUMPUR, July 12 — The Ministry of Finance will revise this year’s gross domestic product growth forecast downwards to around 4 per cent as a runaway resurgence of Covid-19 cases is expected to dash recovery.
Minister of Finance Datuk Seri Tengku Zafrul Abdul Aziz had previously signalled the revision after the government enforced tight movement restrictions to stem a new wave of infections, which is expected to be announced next month.
In an interview with business channel Bloomberg TV, Zafrul hinted that the revised figure would be around 2 percentage points lower than the initial 6 to 7 per cent forecast.
“Around the range you mentioned,” he replied when asked if the forecast would be in the 4 per cent region.
The country’s Covid-19 infection rate has reached new peaks in the last four days after more than two months of registering over 5,000 cases starting May, forcing the government to impose a fresh round of lockdown measures that have hurt businesses.
Zafrul was recently made the coordinating minister for the national recovery plan, responsible for monitoring the implementation of strategy, including intervention measures.
He told Bloomberg TV that the government is still optimistic the economy would recover later this year.
Health director-general Tan Sri Dr Noor Hisham Abdullah said yesterday that the number of daily cases, now hovering around 9,000, is expected to stabilise in the next two weeks.
Related Articles China’s June export growth beats forecast as easing global lockdowns boost demand Tengku Zafrul: NRP is light that will guide Malaysia out of pandemic tunnel Khairy: 204 IDCC PPV staff test positive for Covid-19
