Indonesia recorded its slowest economic growth in five years in 2014. Its gross domestic product (GDP) expanded by 5.01 percent, below its 2013 growth of 5.78 percent, according to Indonesia’s statistics department.
The decline can be attributed to weak exports to China and other key markets leading to falling prices of primary commodities. Furthermore, concerns over the country’s current account deficit and impacts of higher interest rates weakened its currency.
Southeast Asia’s largest economy was also affected by political instability during the 6-month presidential election process last year, dissuading investors.
Indonesia’s new President, Joko Widodo, will face a significant challenge in reinvigorating the economy, said an expert.-VNA
The decline can be attributed to weak exports to China and other key markets leading to falling prices of primary commodities. Furthermore, concerns over the country’s current account deficit and impacts of higher interest rates weakened its currency.
Southeast Asia’s largest economy was also affected by political instability during the 6-month presidential election process last year, dissuading investors.
Indonesia’s new President, Joko Widodo, will face a significant challenge in reinvigorating the economy, said an expert.-VNA
