IMF: Indonesia economy to grow 5.1% in 2017
The International Monetary Fund (IMF) has forecasted Indonesia’s economic growth will reach 5.1% in 2017, mostly driven by domestic expenditure and private investment.
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The country’s growth rate in 2016 is projected at 5% due to strong personal consumption.
According to the Washington-based organisation, economic growth will result in a recovery of commodity price and lower lending rates.
Indonesia’s inflation is predicted at 3.3% in 2016 and increase to 3 – 5% in 2017 due to its policy on adjusting electricity subsidies, said the IMF.
The current account deficit of the Southeast Asian country is forecasted to rise from 2% of gross domestic products (GDP) in 2016 to 2.3% of GDP next year due to a pickup in fixed investment and imports.
The IMF appreciated economic conditions in Indonesia, particularly in the last months of 2016, fueled by appropriate and prudent policies on macro economy and economic restructuring.
