The International Monetary Fund (IMF) has raised its economic growth forecast for Malaysia in its latest World Economic Outlook report released on Wednesday.
Based on its forecast for 2025, Malaysia's Gross Domestic Product (GDP) is expected to grow by 4.5%, up 0.4 percentage points from the April forecast.
For 2026, growth has been revised upwards to 4.0%, up 0.2 percentage points.
Bank Negara Malaysia had previously, on July 28, revised its 2025 GDP forecast to a range of 4.0% to 4.8%, lower than its initial forecast of 4.5% to 5.5%, due to global economic uncertainties and the potential impact of tariffs.
The central bank also said Malaysia's economic outlook still depends on external factors.
Meanwhile, the IMF expects global economic growth to be 3.0% in 2025 and 3.1% in 2026, also an upward revision from its April report.
In its statement, this reflects the lighter tariff burden and its effective impact, improved global financial conditions and fiscal expansion in several major countries.
However, the IMF expects global inflation to decline, but inflation in the United States is expected to remain above target.
The IMF said that the policy priorities going forward are to restore market confidence, ensure policy predictability and maintain economic sustainability
