Indonesia Economic Quarterly, March 2017 : Staying the Course
With a robust rate of economic growth, low current account deficit, a conservative fiscal deficit and inflation at a record low, the fundamentals of the Indonesian economy continue to be strong. Despite global policy uncertainty, economic growth st...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/820321541431186197/Indonesia-Economic-Quarterly-Staying-the-Course http://hdl.handle.net/10986/30840 |
| Summary: | With a robust rate of economic growth,
low current account deficit, a conservative fiscal deficit
and inflation at a record low, the fundamentals of the
Indonesian economy continue to be strong. Despite global
policy uncertainty, economic growth strengthened in 2016 on
the back of higher private consumption growth. The economic
outlook remains positive, supported by a projected pick-up
in the global economy and recovering commodity prices,
carrying both investment and exports.Major shifts in trade
policies among advanced economies, unexpected changes in
U.S. monetary policy, political uncertainty in Europe, a
protracted period of elevated domestic inflation, and weak
fiscal revenues pose significant downside risks. Real GDP
growth in Q4 2016 eased to 4.9 percent yoy from 5.0 percent
in Q3, as government expenditure continued contracting and
import growth rebounded. The 4.0 percent decline in
government expenditure was the largest since Q1 2010, due in
part to base effects of strong expenditure growth in Q4
2015. Meanwhile investment growth rose and export growth
turned positive after eight quarters of contraction, in line
with stronger commodity prices. |
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