Indonesia Economic Quarterly, October 2016 : Pressures Easing
This edition of Indonesia Economic Quarterly (IEQ) reports on the key developments over the past three months in Indonesia’s economy, and provides a more in-depth examination of selected economic and policy issues, and analysis of Indonesia’s mediu...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/824161478091275937/Indonesia-economic-quarterly-Pressures-easing http://hdl.handle.net/10986/25349 |
| Summary: | This edition of Indonesia Economic
Quarterly (IEQ) reports on the key developments over the
past three months in Indonesia’s economy, and provides a
more in-depth examination of selected economic and policy
issues, and analysis of Indonesia’s medium-term development
challenges. Global growth was sluggish in the first half of
the year, driven by weaker than expected growth in advanced
economies. In addition, China’s growth eased as expected as
the economy continues to rebalance from investment- to
consumption led growth, and as excess industrial capacity is
reduced. However, import demand from China was weaker than
expected. On the upside, the global financial market
volatility leading up to and in the aftermath of the Brexit
referendum in June has moderated significantly. Lower
volatility in financial markets has contributed to the
Rupiah’s stabilization against the US Dollar (in line with
most other emerging market currencies). Indonesia’s growth
remained resilient in Second Quarter (Q2), partly supported
by government expenditure, and is forecast to pick-up
gradually on the back of stronger private investment
supported by investment climate reforms and credible fiscal
policy. This resilience stands in contrast to the
performance of several other emerging market commodity exporters. |
|---|