Economists slash 2025 GDP forecasts for Malaysia, Thailand

Economists have downgraded 2025 growth forecasts for Malaysia and Thailand amid escalating global trade tensions. Thailand’s GDP is now expected to rise 2.1%, down from February’s 2.8% projection, and below 2024’s 2.5% pace, as exports and tourism face mounting pressure. Malaysia's expansion is seen slowing to 4.1% from a prior estimate of 4.7%, with second-quarter growth expected at 4.2%. The trade war led by the U.S. is weighing heavily on Southeast Asia, once among the world’s fastest-growing regions. While Malaysia is supported by resilient domestic demand, analysts expect further softening as global demand falters. Easing inflation may allow Bank Negara Malaysia to cut rates later this year. Thai growth remains constrained by high debt and limited policy space for further fiscal stimulus.