According to the Global Times, Indonesia’s economic outlook remains positive next year, thanks to a steady domestic consumption, a robust investment climate and the accelerated infrastructure development, media reported here on Wednesday.
Barclays Research predicts that Indonesia’s economy, the biggest in Southeast Asia, will expand 6.3 percent in 2013, the same pace as this year’s projected growth. Last year it grew 6.5 percent, the fastest pace since 1996.
Among the 10 emerging Asian nations covered by Barclays Research, the country will have the third-fastest economic growth after China and India next year.
Barclay’s prediction is below the Indonesia’s government forecast of 6.6 percent to 6.8 percent for 2013 after growing 6.5 percent this year.
It is also lower than the projection of the central bank, Bank Indonesia, of 6.6 percent to 6.7 percent for 2013.
Barclays Research, a part of the corporate and investment banking division of Barclays Bank, was less rosy on the global economic growth.
In its economic outlook report sent to clients on December 13, it trimmed its global gross domestic product growth projection for 2013 to 3.3 percent from 3.5 percent a quarter ago. It still maintained its 2012 growth estimate at 3.1 percent.
“Emerging economies have much better growth prospects than those for advanced economies,” Barclays Research was quoted by the Jakarta globe as saying.
“They are likely to continue contributing positively to global demand expansion, via incremental fiscal stimulus and monetary easing,” it said.
Perry Warjiyo, an executive director for the economy and monetary policy research at the Indonesian central bank, said that increased economic activity ahead of the elections in 2014 will boost economic growth next year.