Gross Domestic Product (GDP)

What is Gross Domestic Product ? Gross Domestic Product (GDP) is the total income earned by all sectors in the economics within a country. It also known as national output because we believe that the total income that a country gets is derived from the total output produced in the country. National output includes goods and services produced by citizen-supplied and foreign-supplied resources in a country. How to calculate Gross Domestic Product? There are three ways to determine Gross Domestic Product which are expenditure approach, output approach and income approach. These three methods give the same result of Gross Domestic Product.

Let compare the Gross Domestic Product of Malaysia between the year 2011 and the year 2012. According to the data from World Bank, the Gross Domestic Product of Malaysia in the year 2011 and year 2012 are US $ 287.934 billions and US $ 303.526 billions respectively. This shows that there is a difference of US $ 15.592 billions. We can assume that the goods and services produced in the year 2012 have increased significantly and the amount of net export has increased. The increase in Gross Domestic Product is a good trend for Malaysia because Malaysia gets more national income in the year 2012 compare to the year 2011. Thus, Malaysia can spend more in the year 2012.

Reference :

Table of Gross Domestic Product of Malaysia

http://databank.worldbank.org/data/views/reports/tableview.aspx

Chart of Gross Domestic Product of Malaysia

http://databank.worldbank.org/data/views/reports/chart.aspx

Wrote by

Yap Yeow Phing