Economics Assignment, UiTM, Malaysia In terms of economic growth, the impacts of the crisis have been severe. The Malaysian economy contracted by 17.1 percent

University Universiti Teknologi MARA (UiTM)
Subject Economics

In terms of economic growth, the impacts of the crisis have been severe. The Malaysian economy contracted by 17.1 percent year-on-year in 2Q2020—the steepest amount since the aftermath of the Asian Financial Crisis in 1998.

Based on the statement above, it is known that the pandemic impact from Covid-19 had significantly affected the Malaysian economy to one of the worst in history after the Asian Financial Crisis back in 1998. With the downfall and recession in the condition of the economy, the Malaysian government implemented the Movement Control Order (MCO) as part of the initiative to curb the spread of Covid-19.

However, this action had taken a massive negative impact on the economic growth in Malaysia which include the events such as GDP growth, unemployment rate, purchasing power, and so on. Subsequent to this event, the government of Malaysia had been taking the necessary action through the expansionary fiscal policy and monetary policy to facilitate economic growth in Malaysia.

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