(1888PressRelease)
February 22, 2008 - The largest economy in South East Asia posted GDP growth of 6.25 per cent during the period from October to December, despite slowing activity in the global economy.
This was just beneath the average prediction of analysts polled by the Reuters news agency who projected fourth quarter growth of 6.4 per cent and is down from the preceding period's showing of 6.5 per cent.
Nonetheless, the country's fourth-quarter performance brought Indonesia's annual growth rate up to 6.32 per cent - the highest for over a decade.
Helmi Arman, an economist with Bahana Securities, said that growth is likely to be maintained this year, but cautioned that this could slow in the event of a US recession.
He told the Guardian: "Lower interest rates have helped boost last year's growth. Consumption and investment grew quite fast.
"For this year, I think the economy will grow at the same pace as last year. But if there is an economic recession in the U.S. it could affect Indonesia's exports this year. The government should counter this by boosting government spending."
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