Article source
Reuters
Article date
Mon, Jul 1, 2013
The World Bank on Tuesday lowered its forecast for economic growth in Indonesia this year due to a slower-than-expected recovery in exports, a weaker outlook for foreign investment and softer commodity prices.
In its quarterly economic outlook, the World Bank also forecast a significant pick-up in inflationary pressures in Southeast Asia's largest economy following a fuel price hike in late June.
The World Bank now expects Southeast Asia's largest economy to grow 5.9 percent in 2013, down from its previous forecast of 6.2 percent in March.
"While the World Bank's base case is for a moderate slowdown in Indonesia's growth in 2013, picking up again in 2014, the risk of a more pronounced growth slowdown is high," it said.