Gross Domestic Essay

2647 WordsMar 4, 201511 Pages
Malaysia's Economic Analysis Over 10 Years Introductory remarks The gross domestic product (GDP) is an internationally accepted measure of economic activity. The value of a country's overall output of goods and services (typically during one fiscal year) at market prices, excluding net income from abroad. Gross Domestic Product (GDP) can be estimated in three ways which, in theory, should yield identical figures. They are : (1) Expenditure basis: how much money was spent, (2) Output basis: how many goods and services were sold, and (3) Income basis: how much income (profit) was earned. These estimates, published quarterly, are constantly revised to approach greater accuracy. The most closely watched data is the period to period change in output and consumption, in real (inflation adjusted) terms. If indirect taxes are deducted from the market prices and subsidies are added, it is called GDP at factor cost or national dividend. If depreciation of the national capital stock is deducted from the GDP, it is called net domestic product. If income from abroad is added, it is called gross national product (GNP). In Malaysia, GDP compilation is the responsibility of the Department of Statistics, Malaysia (DOSM). Major users of GDP comprise of government agencies (e.g. Economic Planning Unit, Ministry of Finance, and Bank Negara Malaysia, private sector, universities, and international agencies (e.g. World Bank, United Nations, International Monetary Fund). However, statisticians are duty-bound to ensure that, like other statistics, GDP estimates comply with accepted standards, more specifically the System of National Accounts (SNA). SOURCE : WWW.TRADINGECONOMICS.COM i) Malaysian Gross Domestic Product (GDP). The Gross Domestic Product (GDP) in Malaysia was worth 312.44 billion US dollars in 2013. The GDP value of Malaysia represents 0.50

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