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GDP refers to the value of all goods and services produced in a country. For example, Table 1a - Malaysia's GDP in 2002 was RM361 bln. This is the output produced by the people, government and firms in Malaysia, whether they are Malaysian or foreign citizens, or Malaysian or foreign-owned.
Table 1a
GNP refers to the value of all goods and services produced by the residents of a country. Malaysia's GNP is all the value of all the goods and services produced by Malaysian individuals, businesses and government. The relationship between GDP and GNP is illustrated in Figure 1a.
Figure 1a
Figure 1b - Malaysia's GDP is always higher than Malaysia's GNP.
Figure 1b : GNP and GDP
Nominal GDP measures goods and services in current price while real GDP measures goods and services in constant price. Table 1b.
Table 1b : Real and Nominal GDP, an illustration
Figure 1c - Malaysia's nominal GDP is higher than real GDP.
Figure 1c : Malaysia's Real and Nominal GDP
Currently, Malaysia's real GDP is measured in 1987 prices.
Figure 1d - Malaysia's long term real and nominal GDP growth rates.
Figure 1d : Malaysia's Real and Nominal GDP Growth
The most common definition of recession is 2 consecutive quarters of quarter-on-quarter negative GDP growth. In Malaysia, recession is when annual GDP growth turns negative. In the US, recession is determined by the National Bureau of Economic Research, where it is a period of a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
We can look at the GDP data from two angles. The first one is from the activity angle.
Table 1c : Malaysia's Real GDP by Economic Activity in 2002
Figure 1e - Malaysia's Services sector is the biggest sector in the economy.
Figure 1e : % Contribution to the Services Sector in 2002
Figure 1f - Agriculture and Mining Sectors have volatile growth.
Figure 1f : Growth in the Mining and Quarrying sector in Malaysia
Figure 1g - Agriculture and Mining Sectors' share in the economy are declining.
Figure 1g : % share of Agriculture and Mining Sectors in Malaysia's Economy
Figure 1h - Growth in Manufacturing sector - strong before 1997/98 crisis.
Figure 1h : Growth in the Manufacturing Sector in Malaysia
Figure 1i - Manufacturing's share in GDP is rising.
Figure 1i : % Share of Manufacturing Sector in Malaysia's Economy
Figure 1j - Growth in the Construction sector.
Fig 1j : Growth in the Construction Sector in Malaysia
Figure 1k - Construction's share in GDP peaked in 1997.
Fig 1k : % Share of Construction Sector in Malaysia's Economy
Figure 1l - Growth in the Services sector is more stable.
Fig 1l : Growth in the Services Sector in Malaysia
Figure 1m - Services share in GDP is rising.
Fig 1m : % Share of the Services Sector in Malaysia's Economy
Summary
GDP = Agriculture + Mining + Manufacturing + Construction + Services
The second is from the expenditure angle.
Table 1d : Malaysia's Real GDP by expenditure in 2002
Figure 1n - Private consumption.
Figure 1n: Growth in Private Consumption in Malaysia
Figure 1o - Private consumption's share in GDP.
Fig 1o : % Share of Private Consumption in Malaysia's Economy
Figure 1p - Public consumption grew strongly after the 1997/1998 crisis- .
Figure 1p : Growth in Government Consumption in Malaysia
Figure 1q - Public consumption's share in GDP on the rise after 1997/1998 crisis.
Figure 1q : % Share of Government Consumption in Malaysia's Economy
Figure 1r - Growth in investment.
Figure 1r : Growth in Gross Fixed Capital Formation in Malaysia
Figure 1s - Investment share in GDP.
Figure 1s : % Share of Gross Fixed Capital Formation in Malaysia's Economy
Figure 1t - % share of exports and imports, Malaysia's economy is influenced greatly by external sector.
Figure 1t : % Share of Exports and Imports in Malaysia's Economy
Summary
GDP = Private consumption + Public consumption + Investment + Exports - Imports
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Part 1 - National Accounts