KUALA LUMPUR, April 28 (Xinhua) -- Malaysia's gross domestic product (GDP) growth is expected to rebound to 6 percent in 2021 and stabilize at about 5.7 percent in 2022, supported by the rollout of COVID-19 vaccines and continued accommodative fiscal and monetary policies, said the Asian Development Bank (ADB) on Wednesday.
In its Asian Development Outlook 2021 (ADO) April edition, the bank said that recovering consumer and capital spendings are set to revive domestic activity, while a pickup in global demand should boost exports and foreign investment.
"Growth in private consumption will be underpinned by government stimulus packages and further supported by an effective vaccination program," it said.
Although the vaccine rollout should help improve consumer confidence, ADB said that spending will likely remain muted until labor market conditions show sustained improvement.
It also said that the recovery in investment is likely to be modest as the resumption in construction activity will face near-term setbacks with the reintroduction of some pandemic-related restrictions.
Meanwhile, the Manila-based lender noted that vaccine availability and firming foreign demand will boost business sentiment and, in turn, support the recovery in private investment.
The ABD also said the construction of major infrastructure projects, the China-Malaysia joint East Coast Rail Link, as well as Mass Rapid Transit Line 2 and the Pan Borneo Highway, is also expected to lift public investment in 2021.
Malaysia's GDP contracted 5.6 percent year-on-year in 2020 as the economy reeled from the impact of the COVID-19 pandemic and a continued fall in oil prices. Enditem
