Monday, 18 February 2008
Indonesian GDP growth slows in 4th quarter, but 2007
growth is highest in decade
economy grew at a slowerpace in the fourth quarter compared to the third, but
its 2007 growth rate was the fastest in a decade because of rising investments
and commodity exports, the government said Friday.
Asia's largest economy grew 6.25 percent in the October-December
quarter compared to a year ago, slowing from growth of 6.52 percent in the
third quarter, the Central Statistics Agency said Friday.
For all of 2007,
gross domestic product grew 6.32 percent, picking up from 5.5 percent growth in
2006, and slightly exceeding the government target of 6.3 percent.
President Susilo Bambang Yudhoyono, however, warned Friday the government
expects slower economic growth, higher inflation and a wider budget deficit
this year than originally forecast due to the uncertain global economic
The domestic economy
will likely expand 6.4 percent this year rather than the 6.8 percent forecast
earlier as a "global economic slowdown will also affect Indonesia,"
the president said to a gathering of the heads of provincial governments.
Inflation will hit
6.5 percent this year, higher than the 6 percent originally forecast, while the
dollar will average 9,150 Indonesia
rupiah, stronger than the 9,100 earlier predicted, he said.
The budget deficit
is expected to be 2 percent of gross domestic product, wider than the 1.7
percent earlier forecast.
(Source: The Jakarta Post, 2008)