Group 63_Macroeconomic Assignment.docx - Page 1 of 10...

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ECON1016, Sem 1 2019, Assignment
ECON 1016 – Macroeconomics 1
Policy Brief Project
You must compose the policy brief according to the template detailed in this section. Instructions
for each required element of the brief are included within this template These instructions are
reflected in the requirements of the rubric detailed. Ensure that the policy brief includes each of
the elements detailed in the template, and that you do not reorder, rename, or omit any of these
elements.
All members should agree with the following contribution weights to the group assignment.
Group members
Only one submission per group
Please indicate using * in student name who will be submitting the assignment in Turnitin (in
Canvas) on the group’s behalf.
Student name Student
number
% contribution Signature Final mark
(tutors only)
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ECON1016, Sem 1 2019, Assignment
Part A: Diagnostics Analysis
Name of country: Malaysia
Indicator 1 : Gross Domestic Product (GDP)
Figure 1 Malaysia GDP - Long Term
Comments and observations
The GDP of Malaysia generally is in an increasing trend throughout the period of 2009 to 2017.
With the exception of 2015, where there is a drop in oil prices, that have significantly affected the
nominal and real GDP as oil prices have a strong correlation with Malaysia’s GDP over the past
15 years. Being heavily reliant on export-oriented manufacturing, Malaysia is greatly affected by
the global economic crisis in 2008, which resulted in negative GDP and GDP growth rate in
2009.
Figure 2 Malaysia GDP - Short Term
Comments and observations
Overall, the annual GDP of Malaysia increased from 4.2% in 2016 to 5.9% in 2017. Based on the
economic growth of Malaysia from 2016 to 2017, we can observe an increasing trend of GDP, as
compared to the previous year same quarter. This is boosted by the acceleration of private
consumption, investment, government spending and exports. As the private consumption,
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ECON1016, Sem 1 2019, Assignment
investment and exports of the nation decelerates, there is a decline in GDP in the fourth quarter of
2017. However, we can still observe an increase in GDP than in fourth quarter of 2016.
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ECON1016, Sem 1 2019, Assignment
Indicator 2 : Unemployment
Figure 3 Malaysia Unemployment Rate – Long Term
Comments and observations
The unemployment rate of Malaysia is in a decreasing trend throughout the period of 2009 to
2017. With the exception from 2012 to 2013 and from 2014 to 2016. Due to the slowdown in
economic activities, business activities are affected, which resulted in the youth adults and fresh
graduates having difficulty seeking jobs and unable enter the job market, leading to the rise in
unemployment. Overall, the unemployment rate of Malaysia is approximately low and stable
especially in the year 2014 with the lowest unemployment rate of 2.9%.