There are two giant lenders in the world. One is called World Bank and another is International Monetary Fund or better known as IMF. World Bank is not known as WB because WB may just become Warner Brothers for many of us. World Bank says that this is what they do, “The World Bank Group works in every major area of development. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face.” Briefly, for the good of the world.
This is what IMF will focus on, “The key functions of the IMF are the surveillance of the international monetary system and the monitoring of members’ economic and financial policies, the provision of Fund resources to member countries in need, and the delivery of technical assistance and financial services.” Briefly, still for the good of the world. These two have just issued their predictions for the GDP growth or rather GDP contraction for 2020.
Article in focusmalaysia.my This is what World Bank says about Malaysia’s GDP for 2020 and 2021 in its latest Malaysia Economic Monitor. Malaysia’s economy is projected to contract by 3.1% for 2020 because of the sharp slowdown in economic activity caused by the Covid-19 crisis and measures to contain its spread. World Bank said that growth would pick up in 2021 and Malaysia’s GDP would grow by 6.9%. Full article with more details here: Article in focusmalaysia.com
Article in focusmalaysia.my This is what IMF is forecasting for Malaysia’s GDP in 2020 and 2021. The IMF has revised its gross domestic product (GDP) forecast for Malaysia to a 3.8% contraction from a previous 1.7% on the back of a stronger-than-expected negative impact on the economy due to Covid-19. it has also revised downwards its forecast for 2021 to 6.3% from 9% which it forecasted in April report. Full article with more details here: Article in focusmalaysia.my
Let’s be objective here. The number is negative but it does not mean nothing is positive. The similar view from both World Bank and IMF is this