The International Monetary Fund (IMF) has updated its growth forecast for Malaysia, expecting real Gross Domestic Product (GDP) growth to be 4.5% in 2025 and 4.0% in 2026.
The increase in the forecast reflects growing confidence in Malaysia's economic resilience amid global uncertainties.
According to the IMF report, Malaysia's economic performance in 2024 showed a significant improvement with strong overall growth.
The IMF also praised the country's financial fundamentals, stating that external pressures have begun to ease, giving Malaysia room to strengthen reserves and implement structural reforms.
However, risks remain as international trade tensions, tariffs, and weak global demand are expected to put pressure on Malaysia's external demand and exports.
At the same time, fiscal policy adjustments and more proactive measures to strengthen productivity and competitiveness are essential for growth targets to be achieved.
With this new projection, Malaysia is on a positive track, but success depends on the ability of the government and the private sector to face global challenges and fuel a resilient domestic economic recovery.
