JAKARTA (TheInsiderStories) – Good morning! Ahead of this week Indonesia will announce the fourth quarter’ (4Q) economic growth. In the last quarter the country economy’ grow 5.17 percent.
For this year, S&P Global Rating rated Indonesia’s economic growth will not far from the 5 percent. The reasoned, a number of risks has the potential to influence the Indonesian economy in the upcoming presidential elections.
Indonesia also will announce consumer survey, foreign exchange reserve, and last year’ balance of payment data. Moreover, the country still aims for government bond issuance as a front loading strategy in funding 2019′ State budget deficit.
So far, Indonesia has issued Rp102.66 trillion (US$7.28 billion) net, or 26.39 percent of this year’ target at Rp288.96 trillion. Official projected that gross government securities will reach around 50-60 percent target in the 1Q of 2019.
Even though the government securities amount is getting bigger, Indonesia government claims moving carefully, amid this year’ global uncertainty.
Also in this week, Australia, India, Thailand and the Philippines to announce their monetary stance. While, British and US will release purchasing manager indexes, economic growth and inflation data. US’ Federal Reserves Chairman Jerome Powell is scheduled to give the statement that can signal the central bank’s future policy.
After situation has calmed down for US and China trade wars, now the world’ economy may be a little bit shaky because of Italy‘ economy recession. Previously, Italy fell to recession in the fourth quarter of 2018.
The recession, along with Europe’ economic slowdown, is predicted able to encourage European Central Bank increase reference rate or cut the Gross Domestic Product (GDP) projection.
European Zones economic growth itself was only 1.2 percent in 2018′ fourth quarter, lower than 1.6 percent in the same period of 2017. European Union (EU) is considered had lost moments to boost the economy.
Moreover, there is still an uncertain condition over United Kingdom’ withdrawal from the EU. But market must wait for the central bank’s further action. ECB’ meeting schedule to determine the policy is more than a month away.
A day after US-China talks ended in Washington, China purchased at least 1 million tons US soybeans. This indicates the success of the talks. After the bilateral discussion in Washington, China pledged to purchase 5 million tons US’ soybeans.
In the deal, China has agreed to increase US goods imports in agriculture, energy, and others. Moreover, China has followed US request to not violating the country’ intellectual rights and stop “forced” technology transfer to Chinese firms.
May you have a profitable week!