Economic Indicators: Will external trade continue to improve with tariff threats?
Key Economic Indicators and tariffs
In 2025, Malaysia is expected to experience a GDP growth of 4.5%. This growth is attributed to increased domestic spending, investment, and improvements in external trade. The Malaysian economy is predicted to continue its positive trajectory with a 4.4% advance in the first quarter of 2025.
Key Economic Indicators and Trends:
GDP Growth:Malaysia’s advance GDP estimates for the first quarter of 2025 show a growth of 4.4%, compared to 5.0% in the previous quarter.
Services Sector:The services sector is expected to grow by 5.2% in the first quarter of 2025, slightly lower than the 5.5% recorded in the fourth quarter of 2024.
Household Spending:Household expenditure patterns in Malaysia remain largely focused on housing, food, and beverages, and transportation, with a notable increase in spending on restaurant and accommodation services.
Inflation:Malaysia’s inflation rate was 1.7% in January 2025, with increases observed in various categories like restaurant & accommodation services, personal care, and education.
Trade:Malaysia’s total trade increased by 3.1% in January 2025, reaching RM241.9 billion. Exports increased by 0.3%, while imports rose by 6.2%.