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The country’s economy is expected to grow sharply in the second quarter from a low base in the year-ago period, but Covid-19 lockdowns will hamper growth, according to economists polled by Reuters.

The economy is seen growing 14.3 percent year-on-year between April and June, according to the median estimate of a Reuters poll of 20 economists.

Gross domestic product shrank 17.1 percent a year earlier, the worst contraction in over two decades, as the first set of lockdowns to curb the spread of Covid-19 was introduced.

The economy recovered to a certain degree early this year, but recent restrictions due to a resurgence in coronavirus infections have impeded growth.

The country's GDP likely shrank from the first quarter due to the renewed curbs that started in June, said Chua Han Teng, an economist at DBS Group Research.

The economy contracted 0.5 percent in the January-March period.

Movement rules have been eased in some parts of the country, but Kuala Lumpur and Selangor continue to be under lockdowns and non-essential businesses remain shut.

The total number of coronavirus cases stood at 1,299,767 as of Tuesday. The country posted a record number of daily cases and deaths last week.

However, 28.3 percent of the total population has been fully inoculated thanks to accelerated vaccination drives.

"While restrictions will continue to weigh on growth for the next couple of months, with the vaccination rollout accelerating, there is some light at the end of the tunnel," Capital Economics said in a research note.


Malaysia's 2021 economic growth forecast could be lowered due to new lockdown measures, the government said in June.

- Reuters



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