KUALA LUMPUR: The targeted RM3.4 trillion Gross Domestic Products (GDP) by 2030 is achievable, factoring in the current prices and the inflation rate.
“In explaining the GDP as stated in the Shared Prosperity Vision, it is crucial to understand the two concepts in its calculations in nominal or current prices and constant prices,” said the Economic Affairs Ministry in a statement.
It said the measurement of GDP in nominal prices would take into account the effects of inflation.
Previous calculations in constant prices did not factor in the inflation rate and thus did not reflect the increase in added value or actual output, it said.
“GDP is commonly presented in current prices while GDP growth is stated in constant prices.
“It must be stressed that the GDP size calculations of RM3.4 trillion was reached based on current prices by taking into account the inflation.
“So, to achieve GDP of RM3.4 trillion in 2030, a 4.7 per cent growth in constant prices should be achieved between 2018 and 2030 with an average inflation rate of 2.3 per cent within the same period,” read the statement.
In other words, the RM3.4 trillion GDP target could be achieved with an average seven per cent growth in current prices between 2018 and 2030.
“The Shared Prosperity Vision 2030 (WBK2030) documents clearly stated the different factors in the two calculations.
“This is in line with the statement made by the economic affairs minister following the launch of SPV 2030 yesterday.”
It said the vision was a new direction for the nation in facing various challenges in the next decade.
“It is imperative that all parties work together and focus on the same objective to ensure that people from all walks of life would enjoy the long-awaited prosperity and success.”