National Economy Projected to Grow, Despite Sluggish Movement
28 October 2013 22:30 WIB
TEMPO.CO, Jakarta - Despite being shrouded in uncertainty, Bank Indonesia (BI) is optimistic that the national economy will continue to grow within a range of 5.8 to 6.2 percent, a slight increase from last year’s 5.5 to 5.9 percent. The improvement of the national economy was supported by the continuing performance boost of the export sector and the hike of domestic demand near the 2014 General Elections.
BI’s optimism also grew from the fact that national income increased and inflation managed to drop to 3.5 to 5.5 percent.
However, the bank’s confidence was slammed by the projections of economists. They believe the growth in the real sector will plummet due to the benchmark interest rate increasing to 7.25 percent, which will certainly have an impact on credit growth. Each time the benchmark interest rate grows by one percent, credit growth will drop by 1.32 basis points.
TEMPO
