Economists: Full impact of MCO to be seen in Q2 numbers

Economists: Full impact of MCO to be seen in Q2 numbers


KUALA LUMPUR: Amid a highly challenging global and local economic outlook due mainly to the Covid-19 pandemic, economists are predicting a sharp contraction in the country's second-quarter (Q2) gross domestic product (GDP) which will be announced by Bank Negara Malaysia this Friday.

Some even expect up to 13 per cent contraction from a year earlier and the previous quarter after taking into account the substantial year-on-year (y-o-y) decline in industrial output in April and May due to the imposition of the Movement Control Order (MCO).

Malaysia recorded a 0.7 per cent growth in Q1, a decline from 3.6 per cent growth recorded in Q4 2019.