Jakarta, Indonesia (News Today) - The World Bank said Thursday it has cut its forecast on Indonesia's 2010 economic growth to 5.9% from 6% after economic expansion slowed in the third quarter.
South East Asia's largest economy grew 5.8% on year in the July-September period, slowing from 6.2% in the previous quarter mainly due to domestic factors such as weather-related disruptions to agriculture, mining and quarrying.“Looking toward 2011, positive trends in investment and strength of private consumption are expected to continue, and the World Bank is forecasting a mild pickup in growth to 6.2%,“ the bank said in its latest Indonesia Economic Quarterly. Indonesia must enhance incentives for foreign direct investment to maximize the opportunities presented by capital inflows while managing their risks, it added.
Further incentives will help shift capital inflows toward longer-term investment. Like many emerging markets, Indonesia has been witnessing an upsurge in short-term capital inflows seeking higher yields.
“These flows bring benefits, such as lowering financing costs, but can also raise macroeconomic and prudential policy concerns,“ the bank noted.
Source : kompas
Saturday, December 18, 2010
World Bank Cuts Indonesia 2010 GDP Growth Forecast
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