World Bank cuts its global economic growth forecast to 2.4% from January 2016 projection of 2.9 due to the still-stagnant economic growth in some developed countries, lower commodity prices, weaker global trade, and reduced capital flows. Indonesia remains an attractive investment destination and has even become one of the pillars of economic growth in East Asia.
Jim Yong Kim, President of the World Bank Group, says the Global Economic Prospects 2016 report states that commodity-exporting countries and the developing countries must strive to adapt to lower prices of oil and other merchandise. “Slowing economic growth underscores the importance of policies that could boost economic growth and improve the lives of the poor,” said Kim.
China’s economic growth this year is projected at 6.7%, slower compared in 2015 with 6.9%. Growth in East Asian countries outside China is expected to reach 4.8%, the same as in 2015. Increased investment in Indonesia, Malaysia, and Thailand as well as strong consumption in Thailand, the Philippines, and Vietnam will be the backbone of economic growth in the region. Indonesia’s economic growth this year is estimated to be slightly above 5%, depending on the increase in government spending, the realization of infrastructure projects, and the government’s efforts to cut bureaucracy investment. (*)
Add Comment