Home / Knowledge / News / Textiles / IMF projects 4.9% GDP growth for Indonesia
IMF projects 4.9% GDP growth for Indonesia
17
Mar '16
The International Monetary Fund (IMF) expects Indonesia's economy to expand 4.9 per cent year-on-year in 2016, slightly up from a 4.7 per cent in 2015.

It said Indonesia has "safely navigated" challenges caused by the fall of commodity prices and China's slower growth path, but the outlook could still worsen.

"Risks to the outlook are tilted to the downside, mainly from external factors including more volatile global financial conditions, a deeper-than-expected slowdown in emerging market trading partners and further declines in commodity prices, requiring continued vigilance by policymakers," the IMF said.

In its annual policy review, the Fund said medium-term growth prospects are favorable, provided that Jakarta charts a course to more inclusive growth and takes steps to enhance financial system stability.

The IMF Executive Board said that Indonesia's tight monetary policy in 2015 helped to anchor inflation expectations, with headline inflation expected to remain within the target band of three to five per cent in 2016. But they urged a cautious approach to monetary easing.
Indonesia's central bank cut its benchmark interest rate in February by 25 basis points to 7 per cent.

"While the recent easing is appropriate, (IMF directors) agreed that it should be gradual and cautious to safeguard financial stability, keep inflation within the target band and support external adjustment," the IMF said, adding that bond yields should remain market-driven.

The Fund applauded cuts in Indonesia's energy subsidies in 2015 but warned that low oil prices were causing government revenues to underperform their targets. It said that this would require steps to diversify revenues so that the government can continue to make infrastructure and social investments to boost the economy's growth potential. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Top 15 US fashion brands are collectively worth $70 bn

Fashion | On 22nd Jul 2018

Top 15 US fashion brands are collectively worth $70 bn

The top 15 American fashion brands are collectively worth close to...

Courtesy: Covestro

Textiles | On 22nd Jul 2018

Covestro's new products for waterproof textile coating

Covestro, which is among the largest polymer companies, has unveiled...

Evogene, IMAmt to work together in insect resistance

Textiles | On 22nd Jul 2018

Evogene, IMAmt to work together in insect resistance

Evogene, a leading biotechnology company developing novel products...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search