Malaysia economic performance is tied up with the economic
performance of its trading partners. The high level of external trade as a percentage
of GNP shows the openness and dependence of the Malaysian economy on international
trade. In 1997, Malaysia's exports of goods and non-factor services constituted 99.3
per cent of GNP, while its imports was 97.7 per cent of GNP. Since the domestic sector
is adversely affected by the crisis, the country's economic recovery will pivot on
a healthy export performance. Accordingly, this chapter will have a brief overview
of the world economic prospects before examining the macroeconomic outlook for the
country.
