Minister forecasts last year`s economic growth to reach 5.15 percent

03 January, 2019 | Source: Antara News

Finance Minister Sri Mulyani Indrawati has forecast that the Indonesian economic growth in 2018 may reach 5.15 percent, falling short of the target of 5.4 percent set in the state budget.

"The momentum of economic growth could be well-maintained despite a (global) downturn. We predict it will reach 5.15 percent after it has been revised downward from 5.17 percent," she remarked here on Wednesday.

The economic growth forecast of 5.15 percent is a good achievement amidst global uncertainty, she added.

The minister noted that household consumption, investment, and government consumption remain the drivers of the national economic growth.

The performance of both exports and imports is still limited along with the downward trend of global trade due to the increasing pressure of the trade war, she stated.

"We see that responses to (the government) policies in 2018 were felt in the last quarter. However, global uncertainty influenced demand, so it was revised downward," she noted.

The 2018 economic growth had a direct impact on the creation of job opportunities and reduction of the unemployment rate, poverty rate, and economic disparities, she stated.

The unemployment rate stood at 5.34 percent as of August 2018, while the poverty rate was recorded at 9.82 percent and gini coefficient at 0.389 as of March 2018.

"With the sound economic growth, in general, public welfare continues to improve," she pointed out.

Based on the provisional data, the inflation rate stood at 3.13 percent, the interest rate of treasury bills for three-month deposit reached 4.95 percent, and the rupiah`s exchange rate against the US dollar was recorded at Rp14,247 this year, she stated.

"Until the end of last year, the stability of the rupiah`s exchange rate could be maintained at Rp14,247 per US dollar, falling 6.9 percent as compared to the end of 2017," she added.

 

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