Central Bank Has Not Revise Economic Growth Target

TEMPO.CO, Jakarta- Bank Indonesia said it has not revised its target for the country’s economic growth this year.

"Until now we still stick to the previously set target of 5-5.4 percent for 2015" the central bank Governor Agus Martowardojo said here on Tuesday, August 18.

Agus said the global economic growth is also expected to fall short of the target set previously amid the high risk in the global financial market.

The global slump is expected following the U.S. economy growing below expectation and the Chinese slowdown.

Therefore, uncertainty will continue over the Feds decision to raise its interest rate .

Meanwhile, the European economy is expected to improve driven by domestic demand with the decline in unemployment. In addition, the pressure in Greece had receded after acceptance of the bailout fund requirements by the parliament.

On the contrary , the Chinese economy is still weak amid continued pressure in its stock market, Agus said.

"In a bid to improve competitiveness of its export products, the Chinese central bank devalued the yuan to be more market driven which has impact on the currencies of its trading partners including Indonesia," he said.

He predicted the worlds economy is in general expected to remain in the doldrums with the falling prices of commodities.

However, the economy is expected to improve in the third quarter and the last quarter of this year, he said.

ANTARA