Bank Indonesia (BI) has forecast that next year its national economy will grow at almost the same rate as this year’s estimation of 5.1 percent, and domestic consumption will continue to serve as the main engine of growth (Photo: Antara)Jakarta (VNA) – Bank Indonesia (BI)has forecast that next year its national economy will grow at almost the same rateas this year’s estimation of 5.1 percent, and domestic consumption willcontinue to serve as the main engine of growth.
BI Deputy Governor Dody Budi Waluyo stated thatbased on current conditions, the bank hopes the economy will continue to growwithin the same range as it has in 2018.
The bank had previously announced that it willdownwardly revise its economic growth forecast of 5.1-5.5 percent for 2019.
Waluyo said that the current status of economicuncertainty, particularly related to the US-China trade war, will cast a shadowon the global economic growth next year.
The global economic growth will tend to staybelow 3 percent, he remarked.
All countries, except the US, will witness aneconomic slowdown. China will also record a current account deficit for thefirst time ever in 20 years, reflecting the impact it will suffer largely dueto trade, he stated.
Regarding future global monetary policies,Waluyo said BI is awaiting the European Central Bank (ECB) to conductnormalisation to mark the start of a tight monetary era which will have an impacton the interest rate policy in Europe. The normalisation of the high interestrate policy will continue until next year, he stated.
BI will continue to tighten its monetary policy,which will undoubtedly have an impact on economic growth. However, he noted,the policy is believed to be able to reduce the current account deficit, whichhas an adverse impact on the rupiah.–VNA
BI Deputy Governor Dody Budi Waluyo stated thatbased on current conditions, the bank hopes the economy will continue to growwithin the same range as it has in 2018.
The bank had previously announced that it willdownwardly revise its economic growth forecast of 5.1-5.5 percent for 2019.
Waluyo said that the current status of economicuncertainty, particularly related to the US-China trade war, will cast a shadowon the global economic growth next year.
The global economic growth will tend to staybelow 3 percent, he remarked.
All countries, except the US, will witness aneconomic slowdown. China will also record a current account deficit for thefirst time ever in 20 years, reflecting the impact it will suffer largely dueto trade, he stated.
Regarding future global monetary policies,Waluyo said BI is awaiting the European Central Bank (ECB) to conductnormalisation to mark the start of a tight monetary era which will have an impacton the interest rate policy in Europe. The normalisation of the high interestrate policy will continue until next year, he stated.
BI will continue to tighten its monetary policy,which will undoubtedly have an impact on economic growth. However, he noted,the policy is believed to be able to reduce the current account deficit, whichhas an adverse impact on the rupiah.–VNA
VNA
