Malaysian balance of payments problems and policies

Abstract

The world economy has been experiencing a slow growth since 1980 and the situation worsened in 1981. The growth of real GNP for OECD stagnated at 1.2 per cent for both 1980 and 1981. The United States recorded a positive growth of 2 per cent in 1981 after experiencing a negative growth of -0.2 per cent in 1980. Japan registered a drop in GNP growth from 4.2 per cent in 1980 to 3.4 per cent in 1981, and the decrease in the price of petroleum due to slackened world demand because of recessions and conservationist attitudes of the major consuming nations.