Economy of Malaysia
Malaysia is the new industrialized market economy that is relatively state oriented and open. A significant role is played in influencing economic activity and the state plays a major role in influencing this through application of macroeconomic plans. The economy was the 3rd largest in South East Russia during 2012 behind Thailand and Indonesia which are more populous. It is also the 29th biggest economy across the globe in terms of the parity of purchasing power with gross domestic product standing at US$ 492.4 billion while it has a per capita of US $ 16, 922.
Towards the end of the 20th century, this Southeast Asian country also went through an economic boom and its GDP today per capita is $17,200. Precisely because of this, it is viewed as a country that is newly industrialized.
During the 1970’s Malaysia went through an economic boom after which it expanded into an economy sector that is multi driven from one that was focused on just the production of raw materials. It has a wealth of natural resources which ensure that the country enjoys sound developments especially in forestry, agriculture as well as mining. The economic growth is linked to its border with Strait of Malacca which is a crucial shipping international crossroad and which has helped in promoting international trade.
The manufacturing industry in the region is well established and as such, the country is able to produce a wide range of goods. During the first ¾ of 2009 however, the country experienced a steep decline in economic growth. The exports volume decreased drastically as a result of reduced consumer goods as well as global demand. However, during the fourth quarter of 2009, there was some improvement. Malaysia is primarily known for its high living standards which are attributed to its industrial sector which is always expanding.
It is this industry that propelled growth rate in the country from 8 percent to 9 percent from 1987 to 1997. From 1997 to 1998, economic growth in the country contracted due to the Asian financial crisis. The government had no alternative but to cut down on its spending and it also deferred most of its huge infrastructure projects. Interest rates and cases of unemployment also rose at that time and majority of the foreign workers, most of whom are Indonesia were compelled to leave the nation.
It was not until in 1999 that the economy begun recovering and its growth has continued to be seen into the start of the twenty-first century. Despite the efforts applied by the governments towards improving the economic state of the country through preferences, the Chinese continue to exercise long serving dominance over the economy.
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