BLOOMBERG/DIMAS ARDIAN
Indonesia’s economy is projected to expand at its fastest pace in seven years in 2020, despite the deteriorating global outlook and rising risks of recession abroad, reported Bloomberg.
Coming after the government twice revised down its growth forecast for this year, it would mark Indonesia’s fastest expansion since 2013.
Sri Mulyani Indrawati, the Indonesian Finance Minister, said, “A prolonged and escalating trade war between the US and China has created uncertainties that are becoming more unpredictable.”
The government’s fiscal policies are aimed at keeping the economy growing above five per cent but realising growth next year of 5.3 per cent amid the global slowdown will be quite challenging and will face downside risks, said Indrawati.
President Joko Widodo is set to boost spending to a record level to bolster growth in Southeast Asia’s largest economy, which faces risks from waning global demand and the US-China trade war.
Government spending will rise to IDR 2,540.4 trillion ($180 billion) in 2020 while the president has pledged reforms aimed at attracting foreign investment and reversing a persistent trade deficit.
The parliament approved a budget deficit for next year of 1.76 per cent of gross domestic product, lower than this year’s revised estimate of 1.93 per cent and well within the legal limit of three per cent of GDP.
Indonesia’s economy grew 5.1 per cent in Q2 2019—its slowest pace since mid-2017 and has been struggling to grow much faster than five per cent for several years.
MOST READ
BUSINESS
UAE firms launch Covid-19 economic aid packagesBUSINESS
Saudi Arabia plans to boost oil export to 10...BUSINESS
Aldar to invest AED 2 million in Abu Dhabi...BUSINESS
Saudi Aramco posts a 21 per cent decrease in...BUSINESS
Oil drops 31 per cent as price war erupts...BUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
NMC Health hires Moelis for debt restructuringBUSINESS
Saudi Aramco prepares for international listingBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Egypt plans to resume IPOs of parastatalsBUSINESS
SHUAA Capital reports a net profit of AED 45...BUSINESS
HSBC considering exiting from TurkeyBUSINESS
Dubai's DP World buys 44 per cent stake in...
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
