THE USES OF

NATIONAL INCOME
DATA
To measure a country’s rate of economic
growth
• Can be comparing the current national production data with that of the previous
year.
• The information regarding the economic growth rate helps the government make
comparisons with other countries.
To measure the total contribution of the
economic sector to total national production
• Using the product approach the contribution made by each economic sector
towards the overall economic growth can be evaluated.
• Government can determine the sector that are the backbone of the country’s
economy.
Economic planning
• Policymakers need the national income data to draft economic policies for the
coming years as a tool for the government to formulate the short-terms or long-
terms economic planning
• Important guide that provides details about a country’s economic performance
and planning purposes.
• National income statistics to forecast future development based on current
performance such as the ‘Malaysian Plan’ for five years.
To show or indicate the success or failure
of government policies
• Evaluate the effectiveness of an economic policy that has been implemented.
• Allow the government to look at any economic problems that may have arisen
and find ways to solve the problems.