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Malaysia expected to achieve economic growth of 4.5-5.5% in 2025

Resilient domestic demand and ongoing investment activity are expected to help the Malaysian economy to grow 4.5-5.5% this year.

A view of Kuala Lumpur capital city of Malaysia (Photo: AFP/VNA)
A view of Kuala Lumpur capital city of Malaysia (Photo: AFP/VNA)

Kuala Lumpur (VNA) – The Malaysian economy is projected to expand between 4.5% and 5.5% in 2025, underpinned by resilient domestic demand and ongoing investment activity, despite external uncertainties, according to the country’s central bank Bank Negara Malaysia (BNM).

In 2025, headline and core inflation are expected to average between 2-3.5% and 1.5-2.5%, respectively.

In its Economic and Monetary Review 2024 released on March 24, BNM said that inflation is forecast to trend higher but will remain manageable, amid easing global costs and the absence of excessive demand pressures. BNM said global commodity prices are expected to continue to soften, leading to lower production costs for companies.

According to the bank, domestic monetary and financial conditions will remain supportive of financing needs amid sustained economic expansion. Credit demand will be driven by positive prospects of domestic growth and income.

Despite potential risks from external developments, Malaysia’s financial markets are expected to remain resilient and well-positioned to preserve orderly market conditions./.

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