ID :
36411
Thu, 12/18/2008 - 23:27
Auther :
Shortlink :
https://oananews.org//node/36411
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BI PREDICTS ECONOMIC GROWTH 2009 AT 4.9 PCT
Jakarta, Dec 18 (ANTARA) - Bank Indonesia (BI / the central bank) has predicted that Indonesia's economic growth will reach 4.9 percent in 2009, higher than World Bank prediction at 4.4 percent, a BI deputy governor said.
"The impact of the global economic crisis will still be felt in 2009 where world economic growth will decline and the world trade volume will also undergo a cut," BI Deputy Governor Mulyaman D Hadad said here on Thursday.
He said that global economic growth would fall from 3 percent to 2.2 percent while the world's trade volume will drop from 4.1 percent to 2.1 percent. This meant that the world demand for goods will also decrease.
Hadad said that Indonesia's export commodities have high sensitivities against the income of the country's main trading partners such as the United States and Europe so that a decline in their economic growth would contribute to the slowing down of Indonesia's economic growth as well.
Therefore, he said, the national economy would depend on the ability of the country to create domestic demand. "The creation of domestic demand next year is very important," he addded.
BI in the meantime in its capacity as a monetary authority will try its best to support the economic growth by curbing the inflation in time of crisis.
The BI deputy governor said he was convinced that the inflation next year would be lower than this year. This year the inflation rate is predicted at between 11.5 and 12.5 percent (or may be lower) while that in 2009 is projected at 6.5 - 7.5 percent.
The lessening in the inflationary pressures is particularly caused by the slowing down of domestic demand and decline of prices, he said.
In order to keep the inflation rate under a controllable rate next year BI will try to stabilize the rupiah exchange rate so that excessive exchange rate turmoil would not take place, he said. ***2***
"The impact of the global economic crisis will still be felt in 2009 where world economic growth will decline and the world trade volume will also undergo a cut," BI Deputy Governor Mulyaman D Hadad said here on Thursday.
He said that global economic growth would fall from 3 percent to 2.2 percent while the world's trade volume will drop from 4.1 percent to 2.1 percent. This meant that the world demand for goods will also decrease.
Hadad said that Indonesia's export commodities have high sensitivities against the income of the country's main trading partners such as the United States and Europe so that a decline in their economic growth would contribute to the slowing down of Indonesia's economic growth as well.
Therefore, he said, the national economy would depend on the ability of the country to create domestic demand. "The creation of domestic demand next year is very important," he addded.
BI in the meantime in its capacity as a monetary authority will try its best to support the economic growth by curbing the inflation in time of crisis.
The BI deputy governor said he was convinced that the inflation next year would be lower than this year. This year the inflation rate is predicted at between 11.5 and 12.5 percent (or may be lower) while that in 2009 is projected at 6.5 - 7.5 percent.
The lessening in the inflationary pressures is particularly caused by the slowing down of domestic demand and decline of prices, he said.
In order to keep the inflation rate under a controllable rate next year BI will try to stabilize the rupiah exchange rate so that excessive exchange rate turmoil would not take place, he said. ***2***
