RTTNews - Friday, the International Monetary Fund raised its outlook for the Indonesian economy to show a growth of 3%-4% this year from 2.5% expansion predicted initially.
In the first quarter, the country's GDP grew 4.4%, supported by consumption growth of both households and the government. However, the pace was much slower than the 5.2% witnessed in the final quarter of 2008. The Bank Indonesia expects the economy to grow between 3% and 4% in 2009, matching the latest IMF prediction.
Inflation is likely to ease to 5% by the end of this year, the IMF said. In May, the rate eased to 6.04% from 7.31% recorded in April. The central bank has lowered its key interest rate by a cumulative 250 basis points since December to 7%.
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