Indonesia reduces GDP growth forecast

Reading Time: 1 minute

Jakarta mosqueIndonesia’s economy is expected to grow by 5.9 to 6.1 per cent in the second quarter of 2013, the country’s central bank said on June 7 in a statement.

The forecast is slightly below the 6.2 per cent reached in the first quarter.

For the entire year 2013, the bank has revised down the economic growth target to between 6.2 and 6.6 per cent from 6.3 to 6.8 per cent due to a decline on consumption and investment in response to the global economic slowdown, Bambang Brodjonegoro, head of fiscal policy at the Indonesian finance ministry, said.

The central bank has kept its benchmark interest rate on a record low of 5.75 per cent for a fifteenth straight month at the beginning of May to help spur economic growth amid rising inflation pressure.

The government is set to increase subsidised-fuel prices at mid- June to ease pressure on the state budget that allows the country to set aside more funds for infrastructure. High fuel subsidies have put pressure on Indonesia’s fiscal structure as it widens the trade deficit gap, weakens the rupiah and pushes imported inflation.

This, in turn, prompted the central bank to use more of its foreign exchange reserves to balance the rupiah exchange rate.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Indonesia’s economy is expected to grow by 5.9 to 6.1 per cent in the second quarter of 2013, the country’s central bank said on June 7 in a statement.

Reading Time: 1 minute

Jakarta mosqueIndonesia’s economy is expected to grow by 5.9 to 6.1 per cent in the second quarter of 2013, the country’s central bank said on June 7 in a statement.

The forecast is slightly below the 6.2 per cent reached in the first quarter.

For the entire year 2013, the bank has revised down the economic growth target to between 6.2 and 6.6 per cent from 6.3 to 6.8 per cent due to a decline on consumption and investment in response to the global economic slowdown, Bambang Brodjonegoro, head of fiscal policy at the Indonesian finance ministry, said.

The central bank has kept its benchmark interest rate on a record low of 5.75 per cent for a fifteenth straight month at the beginning of May to help spur economic growth amid rising inflation pressure.

The government is set to increase subsidised-fuel prices at mid- June to ease pressure on the state budget that allows the country to set aside more funds for infrastructure. High fuel subsidies have put pressure on Indonesia’s fiscal structure as it widens the trade deficit gap, weakens the rupiah and pushes imported inflation.

This, in turn, prompted the central bank to use more of its foreign exchange reserves to balance the rupiah exchange rate.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid