Economy / Indonesia
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Macroeconomic Forecast Indonesia
April 2008 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Indonesia's economy expanded by 6.32% in 2007, marginally higher than our own 6.20% GDP growth forecast and it has, in our view, reached its medium-term peak. The country managed to maintain the robust growth rate of 6.25% y-o-y in the final quarter of 2007, thanks to a series of interest rate cuts - which buoyed consumer spending and private investment - as well as strong commodity exports. However, given the unfavourable global headwinds, we expect that the momentum from last year's expansion will fail to push the growth rate higher over the coming year.