REPUBLIKA.CO.ID, JAKARTA -- Indonesia will experience slowed economic growth in 2014, World Bank’s latest Indonesia Economic Quarterly report released today. World Bank Indonesia predicts that Indonesia’s gross domestic product (GDP) will grow 5.3 percent this year.
It means a decrease in growth compared to 5.6 percent previous year. Indonesia's economy will improve again in 2015 and 2016, although still below 2013 growth.
"In 2015 and 2016, Indonesia's economy will grow 5.5 percent over the year," World Bank Country Director for Indonesia, Rodrigo Chaves said.
Consumption remains a key to drive national economic growth, followed by investment and exports. World Bank estimated that Indonesia's economy and other developing countries would be affected by the withdrawal of US economic stimulus. However, Indonesia still records high growth in the region after China.
Policymakers in Indonesia have taken steps to encourage near-term macroeconomic stability, especially through monetary policy and exchange rate adjustments, further structural reforms are needed to support export performance and encourage long-term faster growth.
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