IMF Raises Malaysia’s 2025 Growth Forecast Amid Trade Policy Uncertainty

KUALA LUMPUR: The IMF has revised Malaysia’s 2025 GDP growth forecast to 4.5%, up from 4.1%, citing improved global trade prospects despite US tariff uncertainties. The 2026 outlook also rose to 4.0%. Bank Muamalat’s Dr Afzanizam Abdul Rashid said evolving trade dynamics and front-loading by US importers supported early-year momentum. UOB’s Mohd Sedek Jantan expects firms to delay spending amid policy uncertainty, while AmBank’s Firdaos Rosli forecast 3.8% growth, noting risks from weak China and EU demand. Analysts agree that strategic adjustments will shape Malaysia’s medium-term economic trajectory under shifting global trade conditions.

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