GDP refers to the value of all goods and services produced in acountry. 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.

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.

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.

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

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.

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 : 

From an expenditure angle,

GDP = Private Consumption + Public Consumption + Investment + Exports - Imports