Latest Economic Developments 2014:Q1
The economy registered improvement largely due to growth in the services and net exports
Indonesian economy shows some slight improvements in quarter IV-2013, registering 5.72% growth year-on-year, which was lower than 6.18% in the same period last year. This was largely attributable to the incessant pressure on the current account and depreciation of Rupiah, coupled with rising inflation. The deficit on the current account over the last three quarters stoked inflation, which in turn induced an upward revision of reference interest rate, followed by depressed investment. Thus, despite the fact that the level of current account deficit showed a significant decline from USD 8.5 Billion in the previous quarter to USD 4 Billion in quarter IV-2013, the economic growth of 5.78% registered in 2013 was lower than 6.23 % recorded for 2012.
Latest Economic Developments 2013:Q4
Indonesian economic growth in the third quarter slowed. This is line with predictions of GAMA Leading Economic Indicator which was generated on the basis of analysis of the Macroeconomic Dashboard team. Consensus results predicted that Indonesian economy would register the growth rate of 5.57% ± 0.28% in the quarter III-2013. The accuracy of GAMA LEI’s prediction and result of the Macroeconomic Dashboard consensus were very much in line with statistics released by the National Bureau of Statistics that showed Indonesian economic growth to have grown by 5.62% (y-o-y) in the quarter III-2013, which was lower than 5.83% (y-o-y) posted in the quarter II-2013.
Latest Economic Developments 2013:Q3
Indonesia’s current economy is at a critical point. The rupiah depreciation, the acceleration of inflation which poised the highest level since global financial crisis, coupled with rising current account deficit and the hemorrhage of international reserves attributable to capital outflow and huge short term external debt of private sector which has reached maturity have precipitated high instability of Indonesian macro economy. The Indonesian macroeconomic indicators have been deteriorating for more than a year. Besides, the high pressure of Indonesian economy is also attributable to the economic deterioration of emerging economies and an uncertain global economy. Hence, it is essential to put on alert that the aggravation of the condition may plunge the Indonesian economy into a crisis.