Indonesia
said Monday its economy grew at the fastest rate for 15 years in 2011, spurred
by strong household consumption and private investment in Southeast Asia's
biggest economy.
The country, which has become a magnet for
foreign money, posted a 6.5 percent rise in gross domestic product last year --
the quickest pace since the 1997-98 Asian financial crisis -- putting it on
track to hit the government's 6.7 percent forecast for this year.
The strong figures were led by a 4.7 percent
rise in domestic demand, which accounted for around 60 percent of GDP, and an
8.8 percent surge in private investment, according to a government official.
Government spending also rose 3.2 percent, the
official added.
With a population of 240 million, Indonesia
has become a focus for foreign investors who ploughed $20 billion into the economy
in 2011, up from $17 billion the year before.
Singapore, Japan and the United States were
among top investors, tapping into the country's growing mining and
telecommunications sectors, as well as winning contracts for much-needed
infrastructure developments.
Last week, the government said Indonesia
posted a 29 percent surge in exports last year, reaching $203.62 billion and
surpassing an official target of $200 billion.
The data came after Fitch ratings in December
granted Indonesia an investment-grade credit rating after 14 years of junk
status, followed by a similar move from Moody's Investors Service last month.
But as some developed nations remain in the
economic doldrums and others begin to make slow recoveries, Indonesia expects
lower demand for its exports to slow its rapid growth to 6.43 percent in the
first quarter.
"This year's economic growth will depend
on the government's strategy to cope with the continuing global crisis,"
said Central Statistics Agency spokesman Suryamin, who goes by one name.
Credit Suisse in a report Monday held a more
pessimistic view, forecasting annual growth this year at 6.0 percent, warning
Indonesia's loose monetary policy could overheat the economy later this year.
"Indonesia may be the only country in
Asia to show virtually no signs of an economic slowdown whatsoever, but this
has not stopped its central bank from delivering more in the way of rate
reductions than any other in the region to date," the report said.
Meanwhile, Indonesia's bourse was one of
Asia's best-performing markets last year, gaining 3.2 percent as many
exchange's around the world contracted amid tough global economic conditions.
The market has soared around 5.0 percent so
far this year.
Shirley Wibisono | AFP News
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment