IMF upgrades Malaysia’s growth outlook as domestic resilience underpins expansion

THE International Monetary Fund (IMF) has raised its forecast for Malaysia’s real GDP growth in 2026, signalling stronger-than-expected momentum driven by resilient domestic demand and a diversified export base.

In its April 2026 World Economic Outlook, the IMF revised Malaysia’s growth projection upwards to 4.7 per cent for this year, an increase of 0.4 percentage points from its earlier estimate.

IMF also expects the economy to expand by 4.3 per cent in 2027, indicating a steady medium-term trajectory despite ongoing global uncertainties.

The upgraded outlook follows a robust performance in 2025, when Malaysia’s economy grew by 5.2 per cent, supported by sustained domestic demand.

Previously, in its January 2026 World Economic Outlook report titled “Global Economy: Steady amid Divergent Forces”, the IMF had projected Malaysia’s GDP growth at 4.3 per cent for 2026.

Bank Negara Malaysia has forecast the economy to grow between four and five per cent this year, noting that the country’s domestic resilience and diversified export structure will continue to act as buffers against external headwinds, particularly those arising from tensions in West Asia. - April 15, 2026