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Indonesia’s economy, the largest economy in Southeast Asia, grew 5.1 percent in Q1 2019, slightly lower than market expectations, and some experts expect even strongly growth in the years ahead. The economy has grown consistently at around 5 percent for the last 14 quarters, despite capital outflows from emerging markets during 2018.

  • Reforms that have improved the business climate and fiscal incentives to develop manufacturing units have helped support the economy's robust growth.
  • Growth in private and government investment spending has also helped to moderate Indonesia's current account deficit, which had grown during 2018 due to imports used in infrastructure and private investments.
  • The World Bank expects Indonesia’s economy will grow by 5.2 percent in 2019 and 5.3 percent in 2020, supported by private spending, which is backed by stable inflation and a strong labour market outlook as well continued government financial assistance to households.
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