By Rozanna Latiff
KUALA LUMPUR (Reuters) -Malaysia’s economy expanded at its fastest pace in a year in the third quarter, with growth in 2025 poised to come in at the upper end of the central bank’s forecast, Bank Negara Malaysia said on Friday.
Gross domestic product rose 5.2% in the July-to-September period, data from BNM and the Statistics Department showed, in line with projections by economists polled by Reuters as well as a preliminary government estimate. The economy expanded 4.4% in the first two quarters of the year.
GDP rose 2.4% on a quarter-on-quarter seasonally adjusted basis, gaining pace slightly from the 2.2% growth recorded in the previous three months.
Over the first nine months of the year as a whole, the economy grew by 4.7%, well within central bank’s forecast range of between 4% and 4.8% for 2025, BNM Governor Abdul Rasheed Ghaffour told a press conference.
“At this rate for this year, we may record a growth rate that is closer to the upper range of this forecast,” he said.
Growth was subject to both upside and downside risks, Abdul Rasheed said, citing trade disruptions brought about by U.S. tariffs.
The economy however is expected to benefit from a recovery in tourism and higher demand for the country’s electrical and electronic goods, he said.
The government said last month that it expects the economy to expand between 4% and 4.5% next year.
Last week, BNM maintained its benchmark interest rate at 2.75%, after cutting rates for the first time in five years at its July meeting, citing easing trade uncertainties.
Asked whether another rate cut was on the cards, Abdul Rasheed said the current monetary policy levels were appropriate and supportive of the economy, but there was “still space to take action” given the present outlook for growth and inflation.
Inflation was projected to remain moderate this year. Consumer prices in September rose 1.5% from a year earlier, gaining pace slightly after slowing to a four-year low of 1.1% in June.
(Reporting by Rozanna Latiff; Editing by David Stanway)
