KUALA LUMPUR (July 30): The International Monetary Fund (IMF) has upgraded Malaysia's economic growth projections for 2025 and 2026, according to its latest World Economic Outlook report released on Wednesday.
The IMF now expects Malaysia's real gross domestic product (GDP) to expand by 4.5% in 2025, a 0.4 percentage point increase from its April forecast. For 2026, growth was revised upward to 4.0%, up 0.2 percentage point from earlier estimates.
On July 28, Bank Negara Malaysia adjusted its 2025 GDP growth forecast to a range of 4.0% to 4.8%, down from the previous 4.5% to 5.5%, citing global economic uncertainties and potential tariff impacts.
The central bank noted that the outlook remains contingent on external conditions.
Meanwhile, the IMF expects global growth of 3.0% for 2025 and 3.1% in 2026, an upward revision from the April 2025 World Economic Outlook.
"This reflects front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions. Global inflation is expected to fall, but US inflation is predicted to stay above target," said IMF.
Downside risks from potentially higher tariffs, elevated uncertainty, and geopolitical tensions persist, it added.
The IMF said moving forward, restoring confidence, predictability, and sustainability remains a key policy priority.
