BI Governor Predicts Stronger Economic Growth In 2014

Jakarta, Jan 10 (Antara) - Bank Indonesia Governor Agus Martowardojo said the country is expected to chalk up a stronger economic growth in 2014 to follow the global trend. Agus predicted the country`s economic growth would be close to 5.8 percent in 2014 with expected improvement in the global economy and consolidation of the domestic economy toward greater balance. In 2013, the country`s economy was estimated to grow 5.7 percent, slowing down from a growth of 6.2 percent in the previous year, he said. "In 2014, the economic growth is expected to come close to the lower limit of Bank Indonesia`s earlier target of 5.8-6.2 percent," he said here on Thursday. He said in 2013, the country`s economy was confronted with heavy challenges as a result of the global economic slowdown. Advanced economies were beset by crisis and the emerging markets including Indonesia suffered the impact, he said, pointing out the commodity prices fell. In addition, uncertainties in the global financial condition was worse with the negative sentiment brought about by the Fed`s plan to trim its massive financial stimulus. The latest development showed improvement in the global economic condition led by the United States and Japan, and indications of recovery in Europe, China and India, Agus noted. "The improving trend could continue through 2014 to sustain the Indonesian economy in trade and financial sectors," he said. The country`s economic growth which is biased toward the lower limit of the 5.8-6.2 percent range does not mean ruling out a reverse to the 6 percent range," he said. He attributed the lower growth record in 2013 to poorer performance in exports and investment leaving the household consumption the only driver of growth. He said the country`s economic slowdown in 2013 was in line with the stabilization policy of the government and Bank Indonesia to lead the economy toward a healthier more balanced condition. "All in all, a measured stabilization policy could be offset with economic growth in 2013, which was relatively high compared with economic growth recorded by other countries," he said.