Indonesia: Coming out of a cyclical trough

Indonesia has emerged from an awkward adjustment period and the economy is poised to achieve stronger growth and stability. Gross domestic product (GDP) growth is projected to achieve 6.9% for 1994. Inflation is currently about 7%, compared to 9.5% in 1991. Lower interest rates and better economic c...

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Bibliographic Details
Published in:The Institutional investor (U.S. ed.) 1994-04, Vol.28 (4), p.S3
Main Author: Tan, Yong Seng
Format: Magazinearticle
Language:English
Subjects:
Bank earnings
Central banks
Deregulation
Economic conditions
Economic development
Economic growth
Economic indicators
Emerging markets
Exports
GDP
Gross Domestic Product
Interest rates
International trade
Manufacturing
Middle class
Monetary policy
Plywood
State budgets
Statistical data
Stock exchanges
Trade restrictions
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Summary:Indonesia has emerged from an awkward adjustment period and the economy is poised to achieve stronger growth and stability. Gross domestic product (GDP) growth is projected to achieve 6.9% for 1994. Inflation is currently about 7%, compared to 9.5% in 1991. Lower interest rates and better economic conditions translate to improved corporate earnings, estimated to grow 12% for 1993 and 19% for 1994. Leading the recovery are the finance and property sectors. Growth potential is excellent in the medium term because of 3 main factors: 1. success in building up a vibrant non-oil export sector, 2. internal growth, and 3. declining constraints to growth. The underlying fundamentals in Indonesia are excellent and deregulation has helped unleash the country's huge potential.
ISSN:0020-3580