World Bank projects economy to grow 5.2% this year
The Jakarta Post
The World Bank has projected the economy to grow 5.2 percent this year, higher than the government’s projection of 5.18 percent.
The bank said private consumption was estimated to strengthen, while investment would also grow positively. In the first quarter of 2018, private consumption and investment grew at 4.95 and 7.9 percent respectively, according to the bank.
“The investment growth is still high, considering the increasing prices of commodities,” said the World Bank country director for Indonesia, Rodrigo A. Chaves, at the Indonesia Stock Exchange in Jakarta on Wednesday as reported by kontan.co.id.
However, investment growth would increase the import volume of raw materials that would burden the Indonesian economy because the country could not expect to boost its exports due to the protectionist policies of other countries, he added.
Chaves said the global economy would grow slower due to tightening monetary conditions and the emergence of financial volatility centered in developing countries such as Argentina and Turkey.
According to the World Bank, the current account deficit will widen due to high demand in the domestic market, weak trade conditions and sluggish global economic growth.
Its estimates for Indonesia include inflation at 3.5 percent, a current account balance of -2.0 percent and a government budget balance of -2.1 percent. (bbn)
- ‘I’m just ordinary man now’: Setya collects debts from friends to pay restitutio...
- Sri Lanka train kills mother elephant, two calves
- Florence death toll jumps to 31 as flooding wreaks havoc
- Trump hits China with tariffs on another $200b in goods
- Prosecutors call for Jambi rape victim to be punished to deter abortion
- Indonesia must improve its e-government
- Indian bishop accused of raping nun steps aside as arrest calls grow
- Payment of 'uang ketok palu' is tradition, councilors admit to corruption court
- Here are 10 of the most populated cities in the world
- Trump defends Supreme Court pick after sex assault allegation