KUALA LUMPUR, March 24 -- Bank Negara Malaysia (BNM) has forecast Malaysia's economy to grow between 4.5 and 5.5 per cent in 2025, driven by sustained domestic demand despite heightened external uncertainties that could moderate export growth.

In its annual Economic and Monetary Review 2024 and Financial Stability Review for the second half of 2024 released today, BNM noted that headline inflation and core inflation in 2025 are expected to average between two and 3.5 per cent, and 1.5 and 2.5 per cent, respectively.

Inflation is projected to trend higher but remain manageable amid easing global costs and the absence of excessive demand pressures. Domestic monetary and financial conditions are expected to remain supportive of financing n...