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Malaysia Macroeconomics

In: Business and Management

Submitted By carine0929
Words 2117
Pages 9
1.0 Introduction
Malaysia, an upper-middle income country, is a federal constitutional monarchy which consists of 13 states and 3 federal territories located in Southeast Asia. Besides, Malaysia has a newly industrialised market economy which is relatively open state-oriented. It was ranked 3rd largest economy in Southeast Asia and 29th largest economy in the world by purchasing power parity in year 2007. In recent years, Malaysia has successfully transformed itself from being the world’s largest producer of raw material such as tin and rubber to being a diversified economy to reduce the dependence of exported goods. As a result, Malaysia GDP is now driven mainly by the services and manufacturing sectors (Malaysia Factbook 2014).

2.0 Malaysia Economic Growth Rate

Table of Malaysia GDP Growth (Annual %) from year 2003-2012 Year | GDP Growth (Annual %) | 2003 | 6 | 2004 | 7 | 2005 | 5 | 2006 | 6 | 2007 | 6 | 2008 | 5 | 2009 | -2 | 2010 | 7 | 2011 | 5 | 2012 | 6 |

Sources: The World Bank Group 2014a

Line chart of Malaysia GDP Growth (Annual %) from year 2003-2012

Sources: The World Bank Group 2014a
The x-axis of the line chart above represents years from 2003 to 2012 while y-axis represents Malaysia’s GDP Annual Growth Rate. GDP Growth (Annual %) can be defined as annual percentage growth rate of GDP at market prices based on constant local currency (Index Mundi 2014a). According to the line chart, GDP Annual Growth Rate in Malaysia is at average of 5.1 percent from year 2003 to year 2012 and it was growing above 5 percent with the exception of year 2009. The Annual Growth Rate hit record lows of -2 percent in year 2009 and reached an all time high of 7 percent in year 2004 and 2010 (The World Bank Group 2014a).
One of the reasons that contribute to the growth of GDP in year 2004 is the growth of private investment, implying...

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