KUALA LUMPUR, March 21 — Bank Negara Malaysia (BNM) has forecast Malaysia’s economy to grow between 4.5 and 5.5 per cent in 2025, driven by sustained domestic demand despite heightened external uncertainties that could moderate export growth.
In its annual Economic and Monetary Review 2024 and Financial Stability Review for the second half of 2024 released today, BNM noted that headline inflation and core inflation in 2025 are expected to average between two and 3.5 per cent, and 1.5 and 2.5 per cent, respectively.
Inflation is projected to trend higher but remain manageable amid easing global costs and the absence of excessive demand pressures. Domestic monetary and financial conditions are expected to remain supportive of financing needs amid sustained economic expansion, with credit demand driven by positive domestic growth and income prospects.
“While uncertainties remain on the global horizon, BNM will continue to faithfully discharge our mandate and build the trust of the rakyat. Our diversified economic structure and a wide array of policy tools will accord us the resilience and agility to navigate these headwinds,” said BNM governor Datuk Seri Abdul Rasheed Ghaffour.
“We are confident that the Malaysian economy will remain on a steady growth path, with inflationary pressures to remain broadly manageable. With favourable domestic conditions expected, Malaysia should continue its pursuit of key structural reforms to ensure sustainable growth for the years to come,” he added.
More to come
