How did Q1 2020 GDP performance compare to market expectations?

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Malaysia's Q1 2020 GDP Growth Surpassed Market Expectations

Malaysia's gross domestic product (GDP) for the first quarter of 2020 registered a growth of +0.7 per cent year-on-year, a figure that exceeded both general market expectations of -1.0 per cent and AmBank's specific forecast of -2.8 per cent. This performance indicated a more resilient economic start to the year than anticipated, despite the underlying weaknesses in certain sectors that carried over from 2019.
Economic Performance in Early 2020

The +0.7 per cent GDP growth in the first quarter of 2020 marked the weakest expansion since the third quarter of 2009. This slowdown was attributed to the combined impact of the pandemic and a collapse in oil prices, which exacerbated existing vulnerabilities in some sectors and dampened economic activity in areas such as services.
Impact of Global and Domestic Factors

The global recession at the time was viewed differently from historical downturns, with ongoing monetary and fiscal stimulus measures providing support. However, the pandemic's effects, coupled with the oil price shock, significantly impacted Malaysia's economic trajectory.
Forecasts for Subsequent Quarters

Public Investment Bank projected that the second quarter of 2020 would be notably affected by the extended movement control order (MCO). A gradual recovery was anticipated for the third quarter as the economy reopened, with further acceleration expected in the fourth quarter, barring unforeseen circumstances like a resurgence of Covid-19 cases.

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How did Q1 2020 GDP performance compare to market expectations?

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