Malaysia GDP 2024: Overview of GDP Growth and Per Capita Income

Malaysian economy is one of the most open economies in the World and GDP (Gross Domestic Product) is one of the indicators of the growth of an economy.

This article provides a brief overview about the Malaysian economy with a focus on GDP.

Factors driving the GDP growth in Malaysia

As per the World Economic Outlook data, annual real GDP measured in third quarter of 2023, is at a pace of 3.3% of Malaysia.  The factors driving the growth of GDP are private consumption, labor market, infrastructure, public utilities to name a few.

In 2023, all the major sectors registered an expansion. However, in the construction sector the growth slowed to 2.5% compared to last year. The manufacturing sector was stagnant. One of the major reasons was subdued external demand. Further, the economic slowdown in China also made an impact in the GDP of Malaysia.

One of the major drivers of growth was private consumption throughout the year, supported by a healthy labor market. The inflation rate was also moderate through the year. 

Per capita income in Malaysia

According to Investopedia, ‘Per capita income is a measure of the amount of income earned per person in nation or geographic reason.’ It is an important element to determine the quality of living of an individual and their standard of living. Per capita income includes all the individual irrespective they are working or not. Further, the Malaysian Government’s prime focus in 2024, is to be a high income nation. Though due to Covid-19, the progress was at a slow rate, however, the Malaysian Government continuously aim to strive towards investing and developing the Country to facilitate more opportunities. The purchasing power parity and GDP per capita is US $ 39.07 thousand.

Conclusion

GDP is used to measure and calculate the growth and the economy of the country. A good % GPD rate indicates the progress of the country. If the percentage of the amount of export transactions increases compared to the import, the GDP will automatically increase. Reduction in GDP % impact the economy in a negative way. Hence GDP is an essential factor for an economy.