IMF: Malaysia’s economic growth to moderate in ’25

By Nada Ali On Dec 15, 2024

International Monetary Fund (IMF) Egypt — Man standing before IMF building in Washington. (Photo Credit: AP)

Malaysia’s economy improved in 2024 due to strong demand, but growth is expected to slow to 4.7 per cent in 2025 due to decreased investment amid global uncertainty, a recent report from the International Monetary Fund (IMF) showed.

Malaysia’s inflation rate was stable at around 2 per cent in 2024 but is expected to rise to 2.6 per cent in 2025 due to RON95 gasoline subsidy reforms and tighter labour market conditions.

“Bank Negara Malaysia (BNM) should stand ready to tighten monetary policy if the upside inflation risks materialise. Continuing to maintain exchange rate flexibility is essential,” the statement added.

Attribution: IMF report

Subediting: Y.Yasser

Bank Negara Malaysia (BNM)IMF International Monetary Fund International Monetary Fund (IMF)Malaysia Malaysia's economic growth Malaysia's economy Malaysia's inflation rate