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Malaysia's Gross Domestic Product

Paper type: Essay
Pages: 4 (790 words)
Categories: Economics
Downloads: 15
Views: 63

GAP tanks for Gross Domestic Product by adding Consumption, Investment, Government, Export and Import. Some of Malaysia’s economic indicators include GIF (gross fixed investment), private consumption, government consumption, and import and export of goods and services. Malaysia’s imports and exports have decreased steadily, from 19. 6% and 16. 1% respectively in 2004 to 2. 9% and 2. 0% in the year 2008. Year 2004 Factory outlet store macroeconomic report By counterattacking spending and business investment, aided by brisk global demand for their exports reason being of the CARS period that impact the economy in 2003.

After the CARS period, the economy accelerated to its fastest pace, with a 6. 8 percent GAP growth. Year 2005 A slowing global economy in 2005 implies an easing of growth for Malaysia as the economy due to increasing inflation and interest explaining the GAP growth from 6. 8% to 5. 0%. However, by the second half of 2005 the economy recovered momentum. With slower growth in external demand and cuts in government spending, the economy relied heavily on private domestic demand for growth.

Expansion in the private sector remained favorable, as public investment shrunk for the second year running. Ear 2006 In 2006, there was a surprisingly strong GAP growth from 5. 0% to 5. 9%. Domestic demand increased as household spending, which remains an important source of growth, increased. There was strong growth in manufacturing output for electronics as the rising demand for digital music players and mobile phones with video playing capability and Internet access lifted electronics exports.

Inflation was higher at 3. 6% in 2006 from 3% a year earlier due to higher oil prices. Lower international oil and commodity prices, “moderate” wage pressures, and currency appreciation helped notation inflationary pressures. Year 2007 Malaysia’s economy continued to report positive growth of 6% in 2007. Private consumption, Government consumption and gross fixed investment have increased more than in 2006. The services sector expanded strongly and GAP growth was led by finance, insurance, real estate, and business services.

Wholesale and retail trade, as well as accommodation and restaurants, also registered healthy growth owing to strong household spending and inward tourism programs to commemorate the 50th anniversary of independence. Tourist arrivals rose by 19. 5% to 21 million in 2007, tit significant increases in visitor numbers from People’s Republic of China, India, and Indonesia. Year 2008 From 2007 to 2008, there was a decrease in GAP growth from 6% to 5. 7% because of the worse-than-expected US economy.

Due to the fallout from the sub-prime turmoil, Malaysia’s exports were negatively affected, as the US market absorbs 20% of the country’s exports. This led to a lower global GAP growth and reduced world trade volumes for the year. Factors leading to this recession could be attributed to the decrease in consumer loan applications and approvals; a Bank Engage data showing about 1 1 ,500 workers going Jobs in the 3rd quarter 2008; the fall of exports in November 2008 for a second consecutive month and the evident slowing of small and medium enterprises spending.

Considering expansion of F. O. S. Retail Organization in Thailand, we researched and compared the following facts. Thailand – GAP – Real Growth Rate Thailand is an emerging economy which is heavily dependent on exports, with exports accounting for more than two thirds of GAP. From Year 2004 to 2005, the GAP growth rate is the highest, between 6. 7% and 6. 1%. External exports such as Japanese automobiles (Toyota, Ionians, Issue, etc) helped improve the trade balance, with over one million cars produced annually since 2005.

As such, Thailand has joined the ranks of the world’s top ten automobile exporting nations. There was a drop of 1. 6% in Year 2006 due to sluggish investment, weakening exports in the face of the global financial crisis and natural disasters. Typhoons that ravaged the country in the latter part of the year pulled down Thailand GAP growth. The negative effects of the global credit crisis have been compounded by political unrest at home, with thousands of anti-government protesters. The slump in mining and quarrying caused the manufacturing industry to grow at a slower pace.

Likewise, the services sector’s growth weakened with the trade and communications and finance sectors experienced a slight slowdown in growth as compared to 2005. GAP growth rate remained constant in Year 2008. Picked up as consumer spending got a push from the easing inflation. Tourism makes a larger contribution to Thailand economy (typically about 6 percent of gross domestic product) than that of any other Asian nation. Tourists come to Thailand mostly for the beaches and relaxation, and with the recent insurgency in he South, Bangkok has seen a large increase in tourism over the past 4 years.

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Malaysia’s Gross Domestic Product. (2020, Jun 02). Retrieved from https://studymoose.com/malaysias-gross-domestic-product-essay

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