ECONOMY REPORT OF 2ND QUARTER 2007.
Country X economy growth continued to expand by 5.7 percent in the second quarter of 2007 following 5.5 percent growth in the first quarter compared to 5.9 percent growth in 2006. Despite a slow growth in US economy especially in the stock market, high demand in domestic consumption contributes to Country X growth. Country X growth occurs in the domestic production, strong private consumption, high investment and favorable export performance. Forecasting forward, the Country X economy is expected to growth between 5.6 and 5.8 percent in 2007 and 2008 respectively. This report will discuss the following outline-:
1. The DGP growth.
2. The inflation rate
3. Unemployment level
4. The monetary policy
5. Fiscal policy
6. Finally the conclusion
2. THE GDP GROWTH
Country X GDP growths remain strong at 5.7% in the second quarter compared to 5.5%
in first quarter 2007, refer to figure 1. This is a result of high performance in the services, mining, and agriculture and quarrying sectors. The services sector continued to be a major contributor to the GDP growth by registering 9.2 % in the second quarter and the recent campaign of visit Malaysia year 2007 has boosted the industry (look at figure 6).
The construction sector strengthened further during the 2nd quarter by 4.8%- the strongest growth since 2001. The major sub-component that contributes to positive growth are infrastructure project and civil engineering. The manufacturing sector, which shares 30.4 percent of the economy, has growth by 1.5 %, a slower growth than 2.0 percent in the 1st quarter 2007. Also the decelerations of export industry particularly in the electrical and electronic industry had contributed less to GDP growth. Mining sectors has growth by 7.2 % from negative 0.6 growth in...