Indonesian economy to grow 6.3% in 2013: BBVA forecast

Higher than 2012 growth of 6.2%

The forecast came as Indonesia posted solid Q4 GDP growth on robust domestic demand, notes BBVA. Q4 GDP growth came in at 6.1% y/y (consensus: 6.2% y/y).

"Though the outturn was slightly below expectations, full year growth remained high at 6.2%, the third highest in Asia (behind China and the Philippines), on resilience in domestic demand. ASEAN countries continue to be strong performers in the region, and for Indonesia we expect to see a slight increase in growth in 2013, to 6.3%, on improving exports and increased government spending. Bank Indonesia has projected growth to pick up to 6.3%-6.8% in 2013," said BBVA.

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