In a media statement today, the central bank said the economies among developed and developing countries were seen to be recovering, catalysed by the recovery of the manufacturing sector and export activities.
However, the emergence of a new wave of COVID-19 is expected to put pressure on economic growth in the near future.
For Malaysia, economic activity is seen to be recovering in the third quarter of this year.
However, Bank Negara said Recovery Movement Control Order (RMCO) in several states is expected to slow the country's economic recovery in the fourth quarter.
BNM also expects the country's economy to continue its recovery trend by 2021, supported by recovering global demand, as well as increased public and private sector spending, and increased production.
BNM, however, said the recovery rate would vary by sector.
It also expects inflation to remain at negative levels this year, contributed by low oil prices.
Inflation is expected to rise again in 2021, depending on the movement of crude oil and commodity prices globally.
