Chapter 2: Analysis:
2.1 The comparison of Gross Domestic Product (GDP) between Ireland and Malaysia and its reasons. (Real Growth Rate)
Year | Real GDP Growth of Ireland (%) | Real GDP Growth of Malaysia (%) |
2006 | 5.3 | 5.9 |
2007 | 5.6 | 6.5 |
2008 | -3.0 | 4.8 |
2009 | -7.0 | -1.6 |
2010 | -0.4 | 7.2 |
2011 | 0.7 | 5.1 |
The visuals above indicated the GDP (Gross Domestic Product) of two countries which were Ireland and Malaysia. During the year 2006, the GDP of Ireland recorded 5.3% because Ireland’s economic prospects remain good and growth looks set to strengthen further during 2006 with consumer spending is expected to be the main engine of economic growth. ...view middle of the document...
7% for the year, although the divergence between the export-oriented and domestic sectors continued.
In addition, the GDP of Malaysia in year 2006 was recorded by 5.9%. The increased consumption is caused by the low interest which encouraged business investments and higher income for the household to dispose. This in turn generated income for the businesses which could eventually lead to expansionary means that would produce employment. In the year of 2007, the Malaysia economy was rank 29th largest economy in the world by purchasing power parity with gross domestic product for 2007 was estimated to be approximately $357.9 billion (World Bank, 2007). It has been recorded that, Malaysia experienced a stable and consistence record of economic growth in GDP which averaging an annual rate of around 7% over the period between 1970 until 2005. In year 2008, the figure 4.8% shown the GDP become worsened in the first half of 2008 with as yet little effect on Malaysia. But when the financial crisis began to affect the Western countries’ real economy of production and incomes in the second part of 2008, this was increasingly transmitted to Malaysia towards the end of the year. This prompted many to believe that the USD 2 billion stimulus package unveiled by the Government in November, most of which has yet to be spent, may be too little too late. (Out of the USD 1.8 billion that has been channeled out, only USD 400 million worth of projects have been implemented).According to official statistics the recessionary conditions that affected...