The import-adjusted method measures the impact of external demand to GDP. From 1978 to 2005, the contribution of net exports to GDP increased from 36% to 61%. This increasing openness meant that the Malaysian economy was more dependent on international demand in 2005 than it was in the 1970s1. From 2005 to 2012, net exports have declined from 61% to 54% but private consumption increased from 25% to 29%, indicating Malaysia is becoming less dependent on external sectors and relying more on domestic demand.
Malaysia’s balance of trade has been showing an upward trend after the 1997 economic crisis.
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