Covid-19 pandemic leaves scar on Malaysian economy

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Malaysia’s inflation, which was 2.5% in 2021, is estimated to inch up to 2.9% for 2022, 2.2% for 2023, and 2.3% for 2024 and 2025. theSun theSundaily business economy inflation COVID19 news

Malaysia is expected to have one of the largest scarrings among Asian emerging markets post-Covid pandemic, according to S&P Global Ratings.

Economic scarring refers to the difference between S&P’s forecast and the level of GDP if growth had been at potential since 2019. “Government policy has impacted inflation in the country. While energy price inflation generally remains high, that is not so in Malaysia and Indonesia. The two economies are net energy exporters and are not passing on some of the energy commodity cost increases to consumers,” S&P said.

S&P also forecast Malaysia’s Overnight Policy Rate at 2.50% for 2022, 3.00% for 2023 and 3.25% for 2024 and 2025.

 

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