Central Bank: Malaysia’s economy projected to grow 4% to 4.8% in 2025
Malaysia’s economic growth for 2025 is now projected between 4% and 4.8%, a downward revision from the earlier forecast of 4.5% to 5.5%, the country’s central bank announced Monday.
Bank Negara Malaysia cited ongoing uncertainties around global trade policies and tariff disputes as key factors impacting the outlook. The central bank emphasized that these variables could influence worldwide economic growth, directly affecting Malaysia’s export-driven economy, News.Az reports, citing Reuters.
“Our updated growth projections account for various tariff scenarios, ranging from continued elevated tariffs to more favorable trade negotiation outcomes,” the bank said in a statement.
Headline inflation is expected to average between 1.5% and 2.3% this year, reflecting moderate price pressures.
Malaysia faces a potential 25% tariff on exports to the United States unless a trade deal is reached by the August 1 deadline. Malaysian Trade Minister stated that negotiations are progressing well, although some unresolved issues remain—particularly concerning non-trade barriers.
Despite the challenges, Bank Negara affirmed Malaysia’s economy remains on a “strong footing” but acknowledged that uncertainties in the global economic environment continue to pose risks.
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