The International Monetary Fund (IMF) has adjusted its projection for Malaysia’s gross domestic product (GDP) growth upward to 4.7 percent for 2026. This represents an increase of 0.4 percentage points from the previous forecast.
In its April 2026 World Economic Outlook (WEO) report released today, the IMF also provided an initial projection for 2027, estimating that Malaysia’s real GDP growth will reach 4.3 percent.
Previously, in January 2026, the IMF had forecast a growth rate of 4.3 percent for the Malaysian economy. This latest upgrade comes at a time when the fund is reducing its broader global growth expectations due to regional instabilities.
Global economy faces energy price pressure
The IMF has lowered its global growth outlook for the year, citing energy price spikes and supply disruptions driven by the war involving Iran. The report warned that the global economy could teeter on the brink of recession if the conflict escalates and oil prices remain above US$100 per barrel through 2027.
Under its most optimistic scenario, which assumes a short-lived conflict, the IMF expects global real GDP growth of 3.1 percent for 2026. This is a 0.2 percentage point drop from the projections made in January.
Local resilience amid geopolitical risks
The IMF’s positive revision follows a similar move by the World Bank last week, which raised its forecast for Malaysia’s 2026 economic growth to 4.4 percent from an earlier 4.1 percent.
World Bank lead economist for Malaysia, Apurva Sanghi, noted that Malaysia’s macroeconomic fundamentals remain resilient. This strength persists even as downside risks from geopolitical conflicts, trade tensions, and structural shifts in global supply chains continue to cloud the broader economic landscape.
Last year, the Malaysian economy recorded a growth of 5.2 percent, supported by robust domestic demand and a favourable export market. For 2026, Bank Negara Malaysia has projected the economy to expand at a rate between 4 percent and 5 percent.
