Macro - Country Economic Forecasts - Malaysia

Recent data suggest Malaysia's economy had a better start to 2025 after a soft end to 2024. We have upgraded our 2025 growth forecast by 0.4ppts to 4.1%, following a 5.1% expansion in 2024. But shifting base effects mask slightly stronger momentum over this year. Alongside growing inflationary risks, this means Bank Negara Malaysia is unlikely to tweak its policy rate this year.


Malaysia: Uncertainty is the biggest challenge for the economy
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy

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