KUALA LUMPUR (Feb 15): AmBank Group Research said looking into 2021, the economy should recover, supported by improving global GDP and trade, stimulus measures, the Covid-19 pandemic’s containment and deployment of vaccines that will boost both consumer and business sentiments.

In a note today, AmBank chief economist and head of research Dr Anthony Dass said overall investments are expected to improve and so are the major economic sectors.

“Thus, capital expenditure expansion will take place in 2021.

“However, the upside to 2021 growth will be dampened by the rise in Covid-19 cases and restrictive measures imposed in January.

“It will be felt in 1Q2021 but less impactful compared to the April 2020 restrictive measures.

“Still, we remain concerned over the micro, small and midsize businesses,” he said.

On that note, Dass said for the full year of 2021, the GDP is likely to hover around 5.2%–5.9% in 2021.