KUALA LUMPUR, July 20 (Xinhua) -- The Asian Development Bank (ADB) on Tuesday revised down Malaysia's growth forecast this year to 5.5 percent from 6 percent, as the movement control order amid COVID-19 pandemic drags its economy.
The ADB said in a report that an extension of lockdown measures imposed by Malaysia in the second quarter is expected to weaken domestic demand again.
"Business conditions for manufacturers deteriorated sharply in June under stricter containment measures. Greater downside risks are likely as rising infections show no sign of abating," said the ADB.
In the first quarter, Malaysia posted a smaller gross domestic product (GDP) decline of 0.5 percent year on year with improvement in domestic demand and exports, particularly of electronics and electrical products.
The ADB, however, kept Malaysia's GDP forecast for 2022 at 5.7 percent.
Overall, the forecast for Southeast Asian growth in 2021 is downgraded to 4 percent, from 4.4 percent as some countries reimpose pandemic restrictions. However, the GDP growth forecast for 2022 is revised up slightly to 5.2 percent from 5.1 percent, reflecting higher vaccination coverage expected by next year.