Malaysia's real GDP contracted by 3.45% y/y in Q4 2020

Malaysia's real GDP contracted on a real-terms basis by 3.45% y/y in Q4 2020. This stemmed from a seasonally adjusted decline of 0.3% q/q in Q4 2020, which followed considerable volatility in the previous two quarters caused by the lockdown and easing of restrictions. On a y/y basis, private consumption (accounting for 58% of GDP) declined at the faster pace of 3.4% in Q4, with reduced spending on restaurants and hotels and other cultural and leisure pursuits outweighing increases in food and beverages, communication, housing, and utilities.

On a year-average basis real GDP contracted by 5.6% in 2020 following growth of 4.3% in 2019.

Gross fixed capital formation fell by 11.9% y/y, while government spending increased by 2.7% y/y. Because of a smaller fall in the volume of goods and services exports relative to imports, net exports made a positive contribution to GDP growth. On a year-average basis real GDP contracted by 5.6% in 2020 following growth of 4.3% in 2019.

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