Malaysia’s Q1 GDP growth meets expectation, but outlook remains clouded by external risks

[KUALA LUMPUR] Malaysia’s economy expanded by 4.4 per cent in the first quarter of 2025, matching official forecasts, but Bank Negara cautioned that escalating trade tensions and policy uncertainties will decelerate growth for the remainder of the year.

The final figure slightly missed economists’ forecast of 4.5 per cent in a recent Reuters survey, and marked a slowdown from the previous quarter’s 5 per cent growth.

Quarter on quarter, seasonally adjusted gross domestic product in the January to March period expanded 0.7 per cent, contrasting with the 0.2 per cent contraction in the October to December period.