Malaysia Central Bank Forecasts 4-4.8% GDP Growth In 2025

(RTTNews) - Malaysia's economy remains on a strong footing despite challenging external trade situation, the Bank Negara Malaysia said Monday.

The central bank projected the economy to expand between 4 percent and 4.8 percent this year. Favorable outcome of trade negotiation, pro-growth policies in major economies, continued demand for electrical and electronic goods and strong tourism activity could lift Malaysia's exports and growth prospects, the central bank said.

Advance GDP estimates released earlier this month showed that the economy grew 4.5 percent in the second quarter after rising 4.4 percent in the first quarter.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said the Malaysian economy remains resilient despite global uncertainties.

"This is, in part, the outcome of structural reforms that we have undertaken over the years," he added.

"The sustained strength in economic activity and moderate inflation provides a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future," the governor said.

After taking into account the more moderate cost and demand outlook, the bank forecast headline inflation to average 1.5 percent to 2.3 percent in 2025.