Indonesia Economic Forecast

Indonesia is a multinational country, which has given the economy a serious advantage over other countries. However, this country has ongoing challenges specific to the world financial crisis. Even so, Indonesia has seen a declining public debt to Gross Domestic Product or GDP, as well as solid stewardship over the past few years that have helped the growth of the GDP. Some of the areas in specific that have experienced improvement include use of treasure bills, taxation, capital market supervision, and customs.

Indonesia is a multinational country, which has given the economy a serious advantage over other countries. However, this country has ongoing challenges specific to the world financial crisis. Even so, Indonesia has seen a declining public debt to Gross Domestic Product or GDP, as well as solid stewardship over the past few years that have helped the growth of the GDP. Some of the areas in specific that have experienced improvement include use of treasure bills, taxation, capital market supervision, and customs. Although the government of Indonesia has worked hard to create deeper and broader capital markets, the non-bank financial sector, which includes areas of insurance and pension investment continue to struggle. During the financial crisis, Indonesia was hit hard but now, reduced prices for commodities has allowed for noted economic growth and officials are optimistic the future will be brighter.

Indonesia GDP Forecast

The economy of Indonesia depends heavily on domestic consumption but the financial crisis that affected the rest of the world hit this country hard in 2007 and 2008. While Indonesia had serious problems at this time, higher growth rates were actually recorded during this time when looking at the other G20 members along with China and India. The result was the Indonesia GDP (Gross Domestic Product, Current Prices, US Dollar) for 2008 closed at $511.49 billion in US dollars. From the end of 2008 to the end of 2009, a slight increase of 5.45% was seen, which put year-end numbers for 2009 at $529.377 billion placing the country in the number 18 position for world rankings. Then looking out to the end of 2010, current forecasts are that another increase will be seen of 24.30%, putting the US dollar figure at $670.42 (in billions). By 2015, experts suggest a significant increase, which would push the GDP to $1,172.10 billion in US dollars.

Indonesia Unemployment Forecast

The Indonesia population is estimated around 240.3 million, putting the country as the fourth most populated in the world. Keep in mind that people work on just 6,000 of the 18,110 islands of which Indonesia is comprised but some of these offer no real income. Workers are involved primarily with natural resources to include petroleum, natural gas, nickel, bauxite, timber, tin, coal, gold, silver, copper, and fertile soil. Employment has improved with the Indonesia unemployment rate around 7.7%, a reduction from the previous year of 8.4%.

Indonesia Inflation Rate Forecast

Now, when looking at the Indonesia inflation rate, forecasters use data from each year being forecasted rather than end-of-period, based on an index of 2000=100 for average consumer prices. For instance, in 2009, the rate was at 4.814%, a significant decline of just over 50% from the previous year that closed at 9.78%. The same data along with historical numbers are used to forecast future years. As an example, for 2010 and 2015, experts state the years will end at 4.72% and 4.196% respectively.

Indonesia Current Account Balance Forecast

Forecasters also determine the Indonesia current account balance, which uses classifications for current transfers, goods, services, and income. In this case, the focus is on transactions for Indonesia versus what the rest of the world is doing. The closing numbers for 2008 were at 0.13 billion in US dollars, which experienced an increase of 8.00% so 2009 closed at $10.581 billion. At that time, Indonesia had a number 19 ranking worldwide. The for the 2010 forecast, experts expect to see the current account balance at $9.48 billion and by the end of 2015, the numbers will hit around a negative $13.233 billion.