Question

Overview of task: Country Malaysia

Part A: Diagnostics (macroeconomics data collection and interpretations)

Country: Malaysia

Indicator 1: XXXX

indicator 2: XXXX

Attach long term for the indicator ( one table or figure) & attach short term for the indicator ( one table or figure) Task: You apply knowledge to the macroeconomics data and present a diagnostic analysis of the economy. Make important observations and identify the problem in the economy. ( 14 lines Paragraph Form)

Part B: Policy brief report

Task: You form the policy recommendation and communicate with your client in the form of a policy brief. Policy briefs aim to be practical and wellresearched in order to make useful recommendations. (Paragraph Form)

Answer 1

The long term indicators like unemployment and short term indicators like inflation have shown inverse relationships in Malaysia as shown below.

Malaysian economy has seen slowdown in private seonding and fixed investment such that inflation has been under 3.5%, GDP growth has stabilised to 5.9%, unemployment rate at 3.4%, Interest rate standing at 3% and all in all GDP per capita has moderated at 9806dollars as on 2017 December with national debt as 69% of GDp.

Hence looking at numbers we assume economy is already having low debt low inflation and moderate growth indicators of verge of robustness in economy and hence an expansionary fiscal policy by increasing government spending and reduced taxes lead to full fledged swing in economic recovery as depicted in below graph.