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10/11/12

BI: Global Economic Uncertainty Shadowed



Jakarta - Bank Indonesia (BI) examines the global economy is likely to grow more slowly than expected and still shadowed by uncertainties. U.S. economic recovery is still fragile, while the European economy is still contracting as the crisis continues.


Similarly, the Governor of BI Nasution in a press conference at the Bank Building, Jalan MH Thamrin, Jakarta, Thursday (11/10/2012).

"On the other hand, the economies of China and India is also likely to decrease. Global inflation in general is relatively moderate, in line with global commodity prices are likely to go down," said Nasution.

"These conditions encourage the authorities in many countries to take a more lenient policy to boost economic recovery. Steps has created positive sentiment in global financial markets, including foreign capital flows into emerging markets," added the former Director General of Taxes.

Board of Governors assess the domestic economy is still growing quite well, although not as high as originally forecast. Indonesia's economic growth in the third quarter of 2012 is forecasted at 6.3%, lower than previous forecasts due to a decrease in performance of the external sector.

Although consumption and domestic demand-oriented investment remains high growth, falling exports have resulted in decreased production and export-oriented investment. Looking ahead, economic growth will still be supported by strong domestic demand and export potential for improvement though still overshadowed by the global economic uncertainties.

"This is also supported by the still fairly strong source of economic growth in the region, particularly in Eastern Indonesia (KTI) and Java. Accordingly, Indonesia for the overall economy in 2012 and 2013 respectively is forecasted to grow at 6.1% -6 , 5% and 6.3% -6.7%, "said Nasution.

In terms of Indonesia's balance of payments (BOP) in the third quarter of 2012 is forecasted to have a surplus, supported by improvement and greater current account surplus on the capital and financial account.

Current account deficit in the third quarter 2012 is estimated lower than the second quarter of 2012. It was indicated from the trade balance in August 2012 recorded a surplus.

On the other hand, the capital and financial account surplus is expected to increase along with capital inflows and a substantial portfolio inflows of foreign direct investment (FDI) remains high.

"As a result, the amount of reserves at end-September 2012 increased compared to the end of the previous month, which reached U.S. $ 110.2 billion, equivalent to 6.1 months of imports and government foreign debt payments," Nasution lid.
source: detik.com
(Dru / hen)

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