MACROECONOMICS part 2

Export levels is a factor that directly affects the GDP of a country. If the export level increases the net export increases as well. This causes the overall GDP to increase which is a good thing. Here is an article that indicates the decrease in export levels inn Malaysia for the month of May:

                                                                                

May exports lower than expected

PETALING JAYA: Exports for the month of May slumped 5.8% year-on-year to RM55.37bil on lower shipments of palm oil, crude petroleum as well as electrical and electronic products.

The decline was lower than economists’ median expectations of a 3% drop, following the 3.3% fall in April exports.

This marks the fourth month of decline in exports for the year.

Refer to this link for more on this article:http://www.thestar.com.my/Business/Business-News/2013/07/06/May-exports-lower-than-expected.aspx   

From the article we know that the export levels have dropped so this would cause a direct decrease in the countries GDP. A low GDP means that the countries income levels are very low as well as the employment. This problem can also be addressed and the GDP can be improved.

Written by : Umeshshanker Thulasaidas