Wednesday, May 29, 2013

Indonesia to have economic growth at 6.4-6.9 % in 2014

Finance Minister Chatib Basri predicted Indonesia will have an economic growth at the level of 6.4-6.9 percent in 2014.

"The government is optimistic that the target can be achieved considering the improvement in the world`s economy and the growth of Indonesia`s industry and trade sectors," said the minister during a meeting with members of the parliament here on Tuesday.

The minister also mentioned about inflation rate which will be at the level of 3.5-5.5 percent next year. He said the government will boost food commodity`s production to control food price and implement policies in the energy sector.

"Low inflation rate, in long term, will boost Indonesia`s economy to be convergent with other countries` economy in the region. It will make our economy more competitive," said the minister.

Bank Indonesia (BI) has predicted that the national economy in the second quarter of 2013 will grow at a slower pace than projected earlier, and so will the economic growth this year.

The domestic economy expanded 6.02 percent in the first quarter of 2013, down from 6.11 percent a quarter earlier or lower than the central bank`s forecast of 6.2 percent.

The Bank of Indonesia has predicted that the economy in the second quarter of 2013 will grow at a slower pace than its forecast and will not be much different from the first-quarter growth.

Overall, the 2013 economic growth is expected to move to the lower percentage limit of 6.2-6.6 percent.

The current account deficit in the first quarter of 2013 was recorded at 2.4 percent of the gross domestic product, down from 3.5 percent a quarter earlier.

The shortfall in the current account deficit was the result of improving balance of trade fueled by a drastic drop in the import of consumer goods, the central bank noted.

Meanwhile, capital and financial transactions in the first quarter of 2013 recorded a deficit, along with declining foreign investment inflows because of worsening global economic situation and high inflationary pressure.-Philippines News Agency

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