RAM Rating Services Bhd (RAM Ratings) continues to maintain its 2021 forecast for Malaysia's Gross Domestic Product (GDP) at 3.8%.
According to the latest report, the increasing vaccination rate will indirectly have a positive stimulus impact on growth.
Following that, it is also expected to facilitate the reopening of most sectors of the economy in the fourth quarter.
The credit rating agency added that for 2022, it lists a growth projection of between 7%-8%.
Looking at the continued recovery in global demand, especially the soaring demand for semiconductors, will drive Malaysia's improved performance next year.
However, the economic situation is expected to be completely unstable until after 2022 as the impact on the economy has triggered a negative production gap in the short term.
"We estimate that the market economy as a whole will operate at 5% below its production potential in 2022," he added.
In the meantime, it said vaccination rates would continue to remain a key benchmark and driver for domestic recovery as well as the ongoing global economic recovery.
RAM Ratings expects the overall production rate in 2022 to reach about 4.8% -5.8% which is higher than the level recorded in 2019.
