Indonesia GDP Report: Growth At Slowest Rate In 4 Years

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JAKARTA, Indonesia (Reuters) -- Indonesia's economy grew in 2013 at its slowest pace in four years, the statistics bureau reported Wednesday, as the end of a commodities boom undermined exports and higher interest rates depressed consumption.

Gross domestic product rose 5.78 percent in 2013, after a 6.23 percent increase in 2012 and marking the slowest growth since 2009, Reuters reported. The result compared with the median forecast of 5.7 percent growth in a Reuters poll of economists.

Southeast Asia's biggest economy has enjoyed annual growth of more than 6 percent in recent years, underpinned by spending among its growing middle class.

But domestic demand has started to feel the impact of aggressive rate increases by the central bank aimed at easing the current account deficit and reining in inflation.

In the October-December period, the economy grew 5.72 percent from a year earlier, while on a quarterly basis it contracted 1.42 percent. Economists had expected 5.30 percent growth on an annual basis and a quarterly 1.67 percent contraction.

The rupiah traded at 12,185 to the dollar after the announcement, Reuters reported, and Indonesia's main stock index was up 0.36 percent.

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