Indonesian economy in 2007 predicted to grow better

Jakarta (Antara News) - The Ministry of Finance expressed optimism that the country`s economy in 2007 will grow better than this year`s economy due to an improvement of economic fundamentals starting from the third quarter of 2006, an official said.

"With some improvements of the economic fundamentals, the year on year growth in fourth quarter of 2006 is expected to be better than in the previous quarter," Anggito Abimanyu, acting head of the ministry`s Fiscal Policy said here Wednesday.

He said that with some improvements in the investment climate and infrastructure since the third quarter of 2006 the trend would continue in 2007.

The ministry conducted an early monitoring of the country`s macro economy using various leading indicators such as the inflation rate, interest rates, return on capital, bond and share transactions, investment, exports and imports and development of the real sector detected from the tax revenues.

According to him, the indicators showed improving macro economic stability and increasing economic activities.

Private investment does not show any significant improvement yet but capital goods imports which are investment indicators have begun to increase. (*)
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