A corner of Jakarta, Indonesia (Photo: independent.co.uk)
Hanoi (VNA) - Indonesia’s economic growthis expected to continue to be robust in 2018 and 2019 amid global headwinds,according to an update of the Asian Development Bank (ADB)’s flagship annualeconomic publication, Asian Development Outlook (ADO) 2018.
According to ADB Country Director for Indonesia Winfried Wicklein, despitea challenging global environment, Indonesia’s economy is forecast to grow at ahealthy pace in 2018 and 2019.
Economic fundamentals remain solid, with good prospects for growth andinflation under control. The fiscal position remains well managed and measureshave been put in place to preserve stability”, he said.
Notably, Indonesia continued to apply a prudent fiscal policy, which helped remainthe country’s budget deficits low and keep government debt at 30 percent ofGDP.
However, Wicklein stressed the importance for Indonesia totake measures to boost medium- and long-term prospects for economic growth thatis sustainable and benefits all Indonesians.
ADO 2018 notes thatin the face of global economic uncertainties, including international tradetensions and monetary tightening in the US, effective policies that balancegrowth and stability goals are critical.
ADB predicts that Indonesia’s GDP growth is likely to be 5.2percent in 2018 and 5.3 percent in the next year.
While export growth may moderate in the near term, domestic demand should holdup, even as monetary policy is used to mitigate external pressure and promotestability, the bank said.-VNA
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