ECO415 DECEMBER 2015

QUESTION 2 Malaysian Economy Expands 5.5% In First Quarter KUALA LUMPUR: Malaysia's economy expanded by 5 5% in the first quarter ended March 31, 2015, supported by strong private consumption and private Investment. Bank Negara Malayala (BNM) announced on Friday that the GDP growth, on a quarter basis grow it 1.2%. GDP at current pricen amounted to RM277.2 billion in this quarter. At constant prices In 2010, GDP registered a value of FOM254.4 billion, The firm GDP growth, which will above economists' expectations of a 5.5% growth, win driven by in BOY growth In private consumption and the 11.7% increase in private investment. Private Investment was driven by capital spending in the export enterted marufduring industries and the services sector together with on-going full-year investment projects BNM said the current account surplus improved in the quarter to 3.7% or RM10tion of gross national Income, However, gross exports declined due to higher import in the previous corresponding quarter. Meanwhile, The Station Department said the service sector recorded a steady growth of 84%. The growth was mainly led by wholesale and retail trade headed by recall (10,7%] and wholesale (9.8%). The manufacturing sector rose to 5.0% from 54% in the previous quarter, The growth will driven by electrical, electronic and optical products (1.]] due to the production of domestic onented industries such an consumer electronics and communication equipment Mining and quarrying sector posted a strong growth of 9.8%. The growth was primarily reflected by a double digt Increase in the production of crude oil On the contrary, production of natural gan declined in this quarter. Adapted from The Star online, May 15. 2015 Define Grow Domestic Product (GDP) Briefly explain Dive (3) approaches ba calculate GOP From the above article, briefly explain three (3) economic sector which controvin to our economic growth An Eated in paragraph 1, "GOP of current prices amounted & AMPFT.1 Billion n IN quarter. At constant prices in 2010, GDP registered a value of RUTH ( Billion. Different ate between GDP at current prices and GOP at constant prices. quarter to 17% or RMICbillion of grows national income, Briefly explain tee (3) components of the current socourt