Finance minister: Double-digit GDP growth indicates continued recovery trajectory

Finance minister: Double-digit GDP growth indicates continued recovery trajectory

13 Aug 2021

The 16.1 per cent year-on-year growth in Gross Domestic Product (GDP) announced for the second quarter (Q2) of 2021 indicates a continued recovery trajectory, says Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

The growth followed a smaller contraction of 0.5 per cent in the preceding quarter and a decline of 3.4 per cent during the fourth quarter of 2020.

“Based on a six-month perspective, GDP rose by 7.1 per cent, relative to a contraction of 8.4 per cent during the same period in 2020,” he said in a statement following the central bank’s announcement of the Q2 GDP growth today.

The minister said in terms of monthly GDP performance, growth in April and May 2021 recovered strongly at 40.1 per cent and 19.8 per cent, respectively, due to the low base effect during the same months in 2020.

He said growth was also supported by the implementation of stimulus and assistance packages throughout the period, namely Permai, Pemerkasa and Pemerkasa Plus valued at a total of RM75 billion, and complemented by ongoing measures under Budget 2021.

Tengku Zafrul noted that GDP growth in June declined by 4.4 per cent due to the impact of the latest movement control order (MCO 3.0) beginning mid-May, as well as Phase 1 of the National Recovery Plan (NRP) in early June.

However, relative to MCO 1.0 last year, the decline in June 2021 was smaller compared to April 2020 (-28.8 per cent).

Source: Bernama