iii.Look at the trend in real GDP over the period. Did it grow consistently?

Can you see

the effect of the global slowdown?
No . The trend in real GDP for both of the countries does not grow consistently over the
period. Initially , there is an increase in real GDP for both of the countries from the year
1996 to 1997 . During the year 1998 , the real GDP for both of the countries has dropped .
This is due to the Asian Financial Crisis that started in Thailand where speculation of
Thai Baht happens and causes Malaysia and Philippines to be affected. This causes the
real GDP for both of the countries to drop. The economy start to recover from 1999 that
results in increase in the real GDP for both of the countries until 2007
During the fourth quarter of 2008 , Malaysia experienced a decrease in growth rate of
real GDP decreases from 6.30% to -1.51% (2007 to 2009). On the other hand , the growth
rate of real GDP for Philippines drop from 6.62% to 1.15% (2007-2009). This is due to
the present of global crisis that is due to the weaknesses United States financial industry
which escalated into a severe international financial crisis and resulted in high drop in
global trade and global recession by 2008 and hit Malaysia And Philippines. From 2010
onwards, both countries real gdp increased and this shows that the countries economies
start to recover again .
Although the cause of global financial crisis are not even related to Asia countries such
as Malaysia, Japan, South Korea, Philippines and etc. Itself, but they depend heavily on
international business (export) that are adversely affected due to global economic crisis.
The impact of this transmission of negative shock to Malaysia causes the exports and
industrial output to worsen and decline in investments.

Iv. Write 2-3 paragraphs describing the events or the economic conditions in the country
you choose. Explain why they are growing or not growing

Before the crisis , Philippines has already undergone difficulties in sustaining their
economic development .This is due to the country economies has undergone boom-bust
cycle that results in a disappointing economic growth record compared to Malaysia.
Besides , Philippines have a very high poverty rates and unequal distributions of wealth
that causes Philippine economy to lagged behind Malaysia. In 1998 , Philippines
economy deteriorated due to spill over effect of Asian Financial Crisis that started in
Thailand . The speculation of Thai Baht causes currency devaluations and spread rapidly
throughout South Asia , causing Philippines currency to be overvalued and decline in
export competitiveness. Besides , the decline of the real GDP of Philippines is also cause
by the weather disturbance . This has caused the delay in different actions planned by
Philippines government to maintain the continuitiy growth of economy and poverty
reduction .
The slowdown of Philippines economy during 2008 is not solely cause by the global
financial crisis. In contrast ,Malaysia have a higher GDP, and a lower rate of
unemployement as compared to Philippines.The deceleration in Philippine economy was
large cause by the surge in inflation that is triggered by the rise in the price of food and
fuel. The short term issues brought about by the 2008 crisis and other unresovled
structural problems puts Philippines in a difficult situation.The poor economic conditions
in Philippines is caused by economic instability , corruption , safety threats and also
natural and man-made disasters makes Malaysia economic conditions advanced ahead .