Malaysia's Real GDP Growth Forecast Raised To 4.5 Pct In 2025, 4.0 Pct In 2026 -- IMF
KUALA LUMPUR, July 29 (Bernama) -- The International Monetary Fund (IMF) has raised its forecast for Malaysia's real gross domestic product (GDP) growth to 4.5 per cent in 2025 and 4.0 per cent in 2026.
In its July 2025 World Economic Outlook (WEO) update released today, titled 'Global Economy: Tenuous Resilience amid Persistent Uncertainty', the IMF said the forecast for 2025 is 0.4 percentage point higher than in the reference forecast of the April 2025 WEO and 0.2 percentage point higher for 2026.
Meanwhile, the IMF said that in the emerging market and developing economies, growth is expected to be 4.1 per cent in 2025 and 4.0 per cent in 2026.
'Relative to the forecast in April, growth in 2025 for China is revised upward by 0.8 percentage point to 4.8 per cent. This revision reflects stronger-than-expected activity in the first half of 2025 and the significant reduction in US-China tariffs,' it said.
Additionally, it said China's growth in 2026 is also revised upward by 0.2 percentage point to 4.2 per cent, again reflecting the lower effective tariff rates.
'In India, growth is projected to be 6.4 per cent in 2025 and 2026, with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast,' it said.
The IMF highlighted that despite global uncertainties, countries should reduce policy-induced uncertainty by promoting clear and transparent trade frameworks.
'Pragmatic cooperation is paramount in instances in which some rules of the international trading system, in their current form, may not be functioning as intended.
'This entails the pursuit of multilateral initiatives on the global commons and modernising trade rules where feasible, while seeking plurilateral or regional solutions on other matters,' it said.
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