World Bank maintains Ghana’s growth rate at 4.8% in 2026
According to the Bretton Woods institution, the growth will be driven by the services sector, a recovery in oil and gas activities, and ongoing performance tied to structural and fiscal reforms under national programmes.
KUALA LUMPUR: The World Bank has increased its 2026 growth forecast for Malaysia to 5.1 percent, a 0.7 percentage point revision from its prior estimate. The bank's Malaysia Economic Monitor report cites stronger-than-anticipated economic activity in the first half of the year as the reason for the upward adjustment. Domestic demand is expected to remain the primary growth engine, bolstered by ongoing job creation, focused fiscal transfers, and the phased rollout of approved multiyear investment projects.
While external factors like export growth, which is anticipated to decelerate as the temporary surge from frontloaded shipments, partly driven by US tariff measures, subsides, could impact the projection, the goods and services surplus is projected to expand as the deceleration in private investment dampens import demand. Economic growth is projected to decelerate to 4.7 percent in 2027 as the growth in consumption, investment, and public spending moderates.
Inflation is expected to rise modestly to around two percent this year, primarily due to base effects as the impact of administered price cuts in 2025 wanes in the second half of the year. Price pressures are projected to remain under control, with the targeted fuel subsidy mechanism mitigating the transmission of higher global energy prices to Malaysian households.
The World Bank identifies external risks as the primary sources of uncertainty for Malaysia's economic outlook. Potential downside risks include weaker global demand, a more pronounced-than-expected reversal in frontloaded exports, broader tariff measures affecting electrical and electronics exports, and disruptions arising from the Middle East conflict.
Domestically, concerns over the cost of living, adverse weather conditions, and persistent uncertainty could dampen household consumption and business capital spending. On the positive side, stronger global demand for technology, higher tourism activity, and additional household support could propel growth beyond the baseline forecast.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
