Growth forecast to cool in 2026


AmBank Group chief economist Firdaos Rosli expects the country’s gross domestic product to moderate for a second straight year, easing to 4.5% year-on-year in 2026.

KUALA LUMPUR: The economy may be heading into a slower growth phase this year, but AmBank Group chief economist Firdaos Rosli says the moderation reflects a “normalisation” after last year’s front-loading boost rather than a sharp downturn, with domestic demand still providing a cushion.

Firdaos expects the country’s gross domestic product (GDP) to moderate for a second straight year, easing to 4.5% year-on-year (y-o-y) in 2026 from 4.9% y-o-y in 2025 (based on advance estimates) and 5.1% y-o-y in 2024.

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