World Bank lifts Malaysia growth forecast to 5.1pct, warns of AI slowdown [WATCH]
KUALA LUMPUR: The World Bank has raised its 2026 growth forecast for Malaysia to 5.1 per cent but warned that a potential reversal in the global artificial intelligence (AI) boom could pose a key downside risk to the economy.
![World Bank lifts Malaysia growth forecast to 5.1pct, warns of AI slowdown [WATCH]](/img/12748679)
The World Bank has upgraded Malaysia's 2026 growth forecast to 5.1% but cautioned that a potential slowdown in the global artificial intelligence (AI) boom could pose a significant downside risk. The revised projection represents a 0.7 percentage point increase from the previous estimate, driven by stronger-than-anticipated economic activity during the first half of the year, with domestic demand expected to remain the primary growth catalyst.
Malaysia's leading economists advise the country to capitalize on the ongoing AI investment surge to bolster its capabilities and ensure sustained economic growth, even if global AI activity were to cool.
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