Indonesia’s central bank downgrades GDP growth prediction
Bank Indonesia (BI) has reduced its country’s GDP growth forecast from the previous 5 – 5.4% to 4.9 – 5.3% for this year, the Jakarta Globe newspaper reported.
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The slower than expected global economy recovery post-Brexit had contributed to the forecast revision, BI Governor Agus Martowardojo said.
Meanwhile, the Indonesian Government plans to cut 184 trillion rupiah (about US$14.2 billion), including previously announced budget cut in a bid to keep budget deficit below the legal limit of 3% of GDP.
During the first semester, the government spent 37% of the 1,306 trillion rupiah (US$99 billion) budgeted in the 2016 revised state budget, according to the Central Statistics Agency.
The country's GDP expanded 4.91% in the first quarter of 2016 and 5.18% in the following quarter.
