ECONOMICS ASSIGNMNET

First off, we would look at whats macroeconomics; it focuses on aggregate expenditure and
consumption of a nation or region, the amount saved and spent by all households, the
productiveness of a countrys labor force, how actions of a government and central bank
stimulate the overall economy.

The common macroeconomic measurements are Gross Domestic Products (GDP) which is the
total amount of goods produced by an economy. Next is, unemployment, which is the percentage
of people in the economy that are not working and lastly, inflation, which means the rate of the
prices rising.

Macroeconomics is important for governments and regulators to determine if monetary policies

and fiscal policies are needed in order to obtain stable growth and price stability in an economy.
Its also important for investors to have the ability to examine a countrys current and future
economic environment since this will allow them to pinpoint assets and securities that may
benefit OR be harmed by economic variables. Macroeconomics focuses on the larger variables
such as government spending, inflation, employment rate and consumption as mentioned above;
all of which can affect the health of various industries, companies and securities.

But as time goes by, problems and challenges occurs in macroeconomics. In this assignment
well be looking at the : the macroeconomic challenges and opportunities around the world
in 2000s differ from those in the 1990s and case study of a developed country and
compare it with a developing country around the world.

MALAYSIA DEVELOPING COUNTRY

Broad economic data

Up to 2004, Malaysian population stood at 25.5 million with almost full employment. Income
Per Capita was USD$3,033 while Annual Inflation Rate was 1.45%.

historic - fixed year 2004 current

Malaysia
Annual rates of inflation S3 - %
growth
Annual gross income S7 - US$
mn
Income Per capita - US$

198
6

199
0

199
5

200
0

200
1

200
2

200
3

20
04

0.7
4

2.6
2

3.4
5

1.5
3

1.4
2

1.8
1

1.0
6

21,42
7
1,18
4
2.7

40,06
9
1,93
7
2.9

63,17
7
2,68
9
2.9

65,61
5
2,73
2
3.3

70,57
1
2,87
7
3.2

72,59
1
2,89
8
3.6

1.
4
5
77,5
86
3,0
33
3.8

18.1
0

20.6
9

23.5
0

24.0
1

24.5
3

25.0
5

25.
58

Male unemployment rate S5 %

Population: S1 - Mil

2.
6
16.3
3

Sources : Copyright and database right Euromonitor Plc 2005

Gross Domestic Product (GDP)

Malaysian GDP growth slowed down in 2003 in light of the negative growth in the agriculture
sector and other contributing factors. The manufacturing sector however, continued to be
Malaysias engine of growth with its phenomenal growth of 17%.
historic - US$ mn - fixed year 2004
- current
198
6
Malaysia
GDP by origin
GDP from agriculture, hunting,
forestry and

18,8
41

199
0
31,3
37

199
5
58,5
46

200
0
89,6
59

200
1
87,5
40

200
2
98,8
41

2003

103,0
64

fishing

GDP from electricity, gas and water

3,63
9
2,72
7
3,14
7
515

4,7
68
3,71
3
7,59
1
696

GDP from construction

729

DP from mining and quarrying

GDP from manufacturing

GDP from wholesale and retail

trade,
restaurants and hotels
GDP from transport, storage and
communications
GDP from finance, insurance, real
estate and
business services
GDP from community, social and
personal
services S

1,22
3

7,58
2
3,64
8
15,4
43
1,53
0
3,61
8

7,69
6
9,14
4
30,7
41
2,76
6
3,70
5

7,36
8
8,68
0
28,0
95
2,92
3
3,75
6

8,70
3
9,65
4
29,1
76
3,26
2
3,87
1

7,9
55
11,2
18
34,0
34
3,6
44
4,0
11

1,77
7
1,24
6

4,25
6
1,8
49

8,98
2
3,93
8

12,1
74
5,86
3

12,5
18
6,10
0

13,3
17
6,81
4

13,8
41
7,1
42

1,43
3

2,8
18

6,77
8

10,1
97

10,0
52

10,4
40

10,7
18

2,23
2,9
4,41
5,97
4
34
6
2
GDP from other origins
1,28
1,48
2,61
1,40
0
9
1
3
Sources : Copyright and database right Euromonitor Plc 2005

6,33
9
1,70
8

7,32
7
6,27
7

7,5
49
2,9
53

Inflation rate
Malaysia has successfully maintained a low inflation rate which rarely rose above 2% per annum
historic - year on year - current
historic - year on year - current
1999
Malaysia
Annual rates of inflation - % growth
GDP Growth %

2000

2001

2002

2003 2004

2.7% 1.5% 1.4% 1.8% 1.1% 1.5%

6.0% 13.4% -2.4% 12.9% 4.3%

Copyright and database right Euromonitor Plc 2005

Exchange Rate

Malaysia got a new openly sailing swap price program that is superseded by a set swap price
program (pegged towards the US$ at RM3. 80) in 1998 to be able to overcome your Cookware
Financial crisis. This action had been together from the insurance policy involving discerning
swap regulates to safeguard the achievements. That insurance policy has been reversed as well as

the Ringgit has because recently been removed your peg which is on a maintained drift because
September 2005. The particular swap price can be US$1=RM3. seventy two circa 13 Sept, 2005.

Within the 1970s Malaysia authorities enjoyed an integral position within economic system.
Malaysia economics functionality had been impressive within later 1980s and also 1990s with
real progress regarding 8% per year. This particular progress had been caused by expansionary
financial along with monetary procedures compounded through FDI. Malaysia economic system
was a student in financial doom and gloom within 1997/98 along with experienced subtract 4%
within progress with fast downgrading home foreign currency along with liquidity. Simply by
stabilization methods the important productivity raised a good write-up every year regarding 5%
-- 6% within 1998. Seeing that global monetary restricted continuing to continue the actual 19992003 financial constraints preserved a good expansionary foot position, with authority's tuned in
to the desire to sustain debts sustainability. Your countercyclical monetary insurance policy
executed had been successful within promoting monetary healing along with supporting home
need within 2001. Malaysia surely could file a confident progress pace through promoting
successful monetary insurance policy. Governmentt spending within Malaysia had been allotted
for 2 important uses particularly functioning uses along with growth uses. Functioning uses are
regarding changing along with increase output and also regarding long lasting monetary
progress. The biggest element of functioning spending is actually emoluments, financial
assistance, items along with solutions. Simply by enhancing financial assistance is always to
lower regarding problem regarding culture to very poor along with down sides groupings.
Allocating financial constraints regarding growth function to upgrade outlying places along with
low profits people which may have substantial position within supporting progress. The
government growth spending progress is actually swifter compared to functioning that's 7. 1 %
compare to 8. 5% regarding growth expenditures. the primary source of authorities earnings is
actually levy series along with non- levy earnings to financial it is spending to progress regarding
prospect regarding nation likewise. Your income tax is actually important levy within Malaysia
(economic report ministry regarding financial 2010-2011).

Challenges

Very first, while probably the overarching component, fiscal insurance policies driven in the
direction of macrostability have assisted preserve inflation small as well as additional instability
at bay.
Subsequent, the approach was market place helpful as well as out driven, together with liberal
additional regimes of which looked after typically robust competitive postures.
Third, careful authorities surgery in many areas--such because antipoverty programs--unleashed
a strong virtuous circle of authorities paying (especially with education as well as health),
production, as well as expansion of which assisted make sure the fiscal as well as political
durability with the reform method in these kinds of nations.
Lastly, one or more different particular attribute of ASEAN experience has become imperative to
sustaining these kinds of coverage configurations. Your readiness of the nations to regulate
insurance policies flexibly as well as swiftly in a reaction to adjusting fiscal circumstances as
well as issues allowed an instant shift with the fiscal composition while sustaining undamaged
robust macroeconomic principles.

BRAZIL DEVELOPED COUNTRY

South america has had critical macroeconomic alongside agreeable triumphs inside of the last
few 20 years. Offering value adjustment alongside liberal changes inside of the late-nineties and
after that conforming connected with money related alongside external unbalances all through
the 2000's given the most ideal way in regards to advancement recuperation taking after decades
connected with stagnation.

The essential wellsprings of advancement inside of the last couple of quite a while began the
good truly upsets from the intercontinental monetary atmosphere alongside Tiongkok,
particularly. The specific blend of merchandise fares alongside powers arrangements endured an
exhaustive improvement methodology with astonishing reserve funds inside every center
connected with benefits alongside destitution occurrence. The specific developing middle sort
extended this home commercial center. Brazil's long haul inconveniences will probably be the
best approach to save improvement inside of a littler sum favorable intercontinental condition
adequate purpose behind this rising charges connected with redistribution

All through 1994 hyperinflation was tamed in spite of the fact that adjustment didn't have
financial basics. Expansion charges had been essentially kept up under control from the swap
value single point bringing about this overvaluation of which reached a state of perfection inside
of the B razil individual obligation issues from the finish up connected with 1999. A swelling
concentrate on stage with versatile swap energizes was situated in spite of the fact that expansion
charges yearly three years heightened to the two-digit level. The specific defenses to the failure
to control expansion are normally swap value depreciation inside 2000, the essentialness issues
inside 2001, alongside the swap value questions previous Presidential race inside 2002.

Directly after 2003, cozy fiscal alongside money related arrangements conveyed down swelling
charges for you to extra sensible quantities of all around 5% v. the. precisely where these
individuals still remain (Aragn alongside Medeiros 2013). Valid rates had been expanded for
you to 15% inside 2003 alongside little by minimal rejected for you to 7% inside 2008.
Conservative arrangements kept up the essential additional from the Community Sector

Applying for Demands (PSBR) prior said 4% connected with GDP inside of the 1st three years
alongside prior specified 3% connected with GDP yearly 3. High rates, be that as it may, blocked
this diminishment in this insignificant obligations from the PSBR as interest costs dependably
been close to 5% connected with GDP.

Development alternatives through the majority of the last quite a long while had been bargained
from the intemperate genuine rates alongside the instabilities inside of the fiscal altering
technique (Werneck 2011). High real rates positively are a confusing piece of this B razil
financial atmosphere without more straightforward proof still. The famous thoughts among
specialists are normally (a) this extreme quantities of group industry credit details (PSBR)
indicating the insignificant idea (and everybody obligation) for you to stress this fiscal
disequilibrium, to the important idea for you to stretch the genuine disequilibrium; (b) this
expanded division, administers alongside assessment connected with money related schedules
and also remote cash dealings; (c) this dependable memory from the hyperinflation years and
consequences for quality indexation that debilitate this adequacy connected with rates alongside
conveys out instabilities identified with over the top between worldly solidness connected with
substitution inside ingestion; alongside (d) this juridical vulnerabilities identified with an
institutional situation precisely where home rights are typically pitifully constrained accordingly
impeding this recuperation connected with past due monetary items (Arida, Bacha et ing. 2005,
Bacha 2011, Goldfajn alongside Bicalho 2011, Lopes 2011).

The specific huge drawback connected with fiscal augmentation inside of the most recent couple
of decades was in all probability the standard improvement connected with present expenses
inside inconvenience from the contrarily important group speculation choice inside foundation.
Through 2002 for you to 2012, key expense connected with the administration (barring discuss
claimed or worked undertakings) being a segment connected with GDP gone upward from 16.
7% for you to 25. 4% despite the fact that buys uncovered the pitiful increment from 0. 3% to no
less than one. 3% connected with GDP (Giambiagi alongside Muinhos 2013)..

Development inside of the last couple of quite a long while was impelled from the positive
circumstances connected with intercontinental business alongside financial ranges (Teles
alongside Mendona 2013). Straightener, metal, alongside soybean made this B razil financial
atmosphere one of numerous critical recipients connected with Oriental improvement inside of
the last couple of quite a long while. Sum 4 demonstrates that from 2000 for you to 2013 this
words connected with business vastly improved 1. 37 examples while the $ cost connected with
fares developed 5 occasions (12. 7% v. the. ). Inside literally the same time, send out for you to
Tiongkok upgraded 50 occurrences (35% v. the. ) alongside her uncover connected with B razil
fares gone upward from 1. 8% for you to 18%.

The specific splendid fare usefulness was transported to the present thought additional, store
aggregation alongside individual obligation lessening. The specific static redress connected with
business unbalances inside of the condition connected with rising intercontinental liquidity
carried on the ethical routine with colossal inflows connected with bizarre solid buys, $
downgrading and also an unfathomable aggregation connected with uncommon store, which is
today close to 380 thousand cash. As a result, the web abnormal individual obligation happened
from 189 thousand cash inside 1999 with an awful cost connected with 62 thousand $ inside
2012, alongside the $ devaluated from R$ 3. 0, inside 2003, for you to lower than R$ 2. 0, from
2008 for you to 2012.

Alongside $ cheapening alongside store collection, everybody industry developed to turn into the
internet external moneylender of a total equivalent to 15% connected with GDP alongside
internet group industry individual obligation rejected from 60% connected with GDP inside 2002
for you to 35% GDP inside 2012. Additionally, this substantive changes inside of the group
business individual obligation client profile appear inside of an any longer development the
buying from $ recorded bonds and in addition a huge bringing down in this uncover connected
with recorded bonds in general. To wrap things up, this Middle Standard bank got a few
discriminating approaches to outside money convertibility.

The specific amiable triumphs inside of the last few 20 years are really astonishing from each
recorded alongside intercontinental perspectives. As of not long ago, South america keeps on
being a standout amongst the most rough associations inside contemporary earth. Through 1970
for you to 2000 (period which is the reason Census little records are generally accessible), this
Gini coefficients connected with family unit benefits per capita dependably been practically
nonstop at 0. 6, one of numerous most astounding degrees noted at countrywide level in
advanced times.

In the most recent quite a while, nonetheless, far reaching advancement arrangements approved
to cut down

Gini figures for you to underneath 0. 53. The specific extensive improvement method for last
quite a while profited pretty much all courses in spite of the fact that benefits increments had
been efficiently greater in regards to low wage courses. Utilizing this serious deciles, from 2001
for you to 2011, once-a-year basic improvement ur ates connected with benefits per capita gone
from 6. 5% to the base section 10. 0% in examination with 1. 5% v. the. to the main 10. 0%. All
through intercontinental words, this 20 trillion Brazilians inside of the base section 10%
accomplished benefits for each capita improvement close to these connected with Tiongkok
alongside Of india, despite the fact that per capita advancement charges from the 20 trillion
Brazilians inside of the major 10% had been close to these connected with Sweden. In this way,

this velocity connected with benefits per capita union between awful alongside stacked people
connected with South america was similar to the only one between Oriental alongside Swed

Conclusion & recommendation

In my opinion, Malaysia needs more government support for those who just graduated from their
universities as I notice its difficult to get a job in Malaysia even if you graduate from a top
university.
Other than that, the government should give more subsidies to the citizen as the cost of living in
Malaysia is really high but the income is not increased
References
Navaratnam, R.V.
1997. Managing The Malaysian Economy: Challenges & Prospects.
Petaling Jaya: Pelanduk Publications 22nd june 2015

Zagha, N. R
2004. Shanghai Conference: Scaling Up Poverty Reduction: Lessons and
Challenges from China, Indonesia, Korea and Malaysia. World Banks Poverty Reduction and
Economic Management (PREM) Network. 22nd june 2015

World Bank 2004. East Asia Update April 2005. East Asias Dollar Influx Signal for Change.
The World Bank. 22nd june 2015
https://en.wikipedia.org/wiki/Developed_country 22nd june 2015
http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?page=4 22nd june 2015