INDONESIA'S economy expanded 6.5 per cent in the fourth quarter from a year earlier, as surging domestic consumption and investment offset weakening exports growth, giving the central bank room to hold rates steady this week.!
The rise in gross domestic product (GDP) was slightly above the median forecast in a Reuters poll of 6.4 per cent. It marked the third straight quarter of 6.5 per cent expansion.!
The data also showed the economy shrank 1.3 per cent from the previous quarter, a slightly smaller contraction than the 1.5 per cent forecast.!
Full-year 2011 growth was 6.5 per cent, the strongest pace since 1996 when the economy expanded 8.0 per cent, IMF data shows.!
The Indonesian figures show the G20 economy is being shielded from the global slowdown by domestic demand and cap a year during which Indonesia won a return to investment grade status for the first time since the Asian financial crisis.!
"Indonesia is one of the least exposed economies in the region, with a vast domestic market and a relatively small share of exports to GDP, so is anyway insulated from volatility in the global economy," said George Worthington, economist for IFR in Sydney.
"In that context, the steady pace of growth and core inflation both argue for similarly steady policy settings from the central bank this week."Reuters
Tuesday, February 7, 2012
Print this article
Email this article
Twitter
Facebook
