Bank Indonesia: Growth in Q4-2013 Improved and Became More Balanced
The central bank of Indonesia (Bank Indonesia) stated that economic growth during the fourth quarter of 2013 was recorded at 5.72 percent (yoy), thus having increased compared to the previous quarter (5.63 percent, yoy), and which is also higher than Bank Indonesia's estimate (5.7 percent). With this development, the overall economic expansion in 2013 reached 5.78 percent. Bank Indonesia considers that the fundamental condition of Indonesia’s economy is still relatively robust.
Backed by this solid performance of economic expansion - amid global uncertainty - the stabilization policies taken by Bank Indonesia and the government of Indonesia aimed at reducing the current account deficit as well as inflation may be achieved.
Economic growth in Q4-2013 was supported by an increase in export and continued consumption moderation. Export growth reached 7.40 percent (yoy), boosted by the increasing demand from developed countries (trade partners). Such export growth is also depicted in the growth of economic sectors related to export, such as mining and manufacturing. Meanwhile, growth of domestic demand slowed down in line with the slowdown of total consumption and investment growth at 5.44 percent (yoy) and 4.37 percent (yoy) respectively, from 5.89 percent (yoy) and 4.54 percent (yoy) respectively in Q3-2013. In line with reduced domestic demand, imports in Q4-2013 also recorded a contraction of 0.6 percent (yoy). Overall, the structure of Indonesia’s economic growth has become more balanced in line with the stabilization policies implemented by Bank Indonesia and the government.