Malaysia’s GDP growth was 4.3% in 2019 from 4.7 in 2018. Based on projections by the Ministry of Finance (MOF) released in tandem with Budget 2020, the Malaysian economy is envisaged to register a GDP growth of 4.8% in 2020.
MOF is yet to revise the number.
GDP growth of 4.3% is a healthy number given the population growth of 1.1% for Malaysian. It is not fast but healthy.
It is in tandem with world GDP which is expected decelerated to an estimated 2.4 percent in 2019 amid a decline in various key indicators of economic activity. This is the slowest pace since the global financial crisis.
Globally, economic weakness was widespread, with nearly 90% of advanced economies and 60% of emerging market and developing economies (EMDEs) experiencing varying degrees of deceleration last year.
In East Asia Region including China, global trade slowdown and heightened trade policy uncertainty have affected regional growth through three main channels: weaker total exports; disruptions in cross-border supply chains; and declining private investment amid low business confidence
Indonesia’s economy grew 5.02% annually in 2019, was the weakest since 2015, slowing from 5.17% in 2018. This also means the Indonesian government failed to achieve the targeted growth of 5.3% stated in the 2019 state budget.
How It Will Effect You in 2020?
2020 will experience lukewarm economic growth. Recession is unlikely. The best thing to do is to stay focused on your financial well-being.
Continue to improve your reading and thinking skills. Chart a clear course for your career and business.
If you’ve invested in the stock market or unit trust, be calm during any pull-back. Time to reduce debt, build up your savings, and increase your wealth and health.