Macroeconomic Forecast Indonesia

August 2006 | Macroeconomic Forecasts

BMI View: We expect Indonesian growth to be 5.3% this year, slowing from 5.6% in 2005 as high inflation and borrowing costs damage consumer and business confidence. We expect domestic demand to build through the year as monetary conditions are relaxed, meaning growth will accelerate from 4.6% in the first quarter. Macroeconomic stability should return in Q406 with inflation coming back down into single-digits. The major threat comes from the economy. Monetary tightening across Asia appears to be biting, with a recent

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