MALAYSIA’S gross domestic product (GDP) growth is expected to ease to an annual rate of 2.2% in the first quarter of 2020 (1Q 2020) from 3.6% in 4Q 2019, according to IHS Markit’s estimates.
Similar to Japan’s economic growth, IHS Markit said 1Q 2020 GDP growth for Malaysia looks set to be worse than the depth of the global financial crisis.
The research house projected Japan’s 1Q 2020 GDP to register a fall of 2.1% year-on-year.
In its Week Ahead Economic Preview note released today, IHS Markit said the week ahead would see some key retail sales and industrial output numbers released globally, which would provide important signals as to just how steeply economies may collapse in the second quarter.
“Given that the Purchasing Managers’ Index (PMI) surveys for April 2020 showed the global economy contracting at an unprecedented rate, with manufacturing slumping at a pace not seen for 11 years, we are anticipating some gloomy news,” it said.
As for the United States’ economic performance for 1Q 2020, IHS Markit expected the GDP to fall at a quarterly rate approaching double digits, as its survey data suggested the economy took a further significant lurch downwards at the start of the second quarter as measures taken to contain Covid-19 intensified.
“Lockdowns, non-essential business closures and social distancing hit business activity and demand,” it said.
As for China, which will also release industrial production and retail sales data alongside a slew of other indicators, including investment next week, IHS Markit said the numbers could provide important clues as to how quickly production and consumer spending might rebound.
Next week will see the release of a number of key data around the world, including Malaysia’s 1Q 2020 GDP data (set for May 13), Japan’s 1Q preliminary GDP data (May 17), US retail sales and industrial output data for April (May 15), as well as China industrial output, retail sales and jobless data for April (May 15). — May 8, 2020, Bernama
