JAKARTA, Jan. 18 (Xinhua) -- With economic growth expected to reach 5.5 percent this year and 7 percent next year, Indonesia, along with some Asian economic growing countries would lead the world's economic recovery, analysts of Standard Chartered Bank ( SCB) said here on Monday.
Dr. Gerard Lyons, SCB Chief Economist and Group Head of Global Research, said that Indonesia had been a strong performer during the recent global recession, and emerged as the third fastest- growing member of the G20 in 2009.
Asia had weathered the global financial regulation due to healthy household and corporate balance sheets and prudent financial regulation, Dr. Lyons said.
He added that while exports have been hurt severely in the past 12 to 18 months, a financial meltdown in Asia had been avoided.
"As a result, Asia is expected to lead the global recovery in 2010. Meanwhile, Asia, led by China and India, is expected to expand by 7 percent this year from 4.5 percent last year," Dr. Lyons said in a seminar entitled "A Post Crisis World: Implications For Asia" held here.
Meanwhile, SCB Indonesia Economist, Fauzy Ichsan, said that positive Indonesia Gross Domestic Product (GDP) growth in 2009 was helped by infrastructure spending which helped drive investment growth.
High commodity prices also added a boost, while international investors were reassured by Indonesia's status as the world's third largest democracy following successful presidential and parliamentary member elections in 2009.
Positive economic performance indicators amid the crisis were also demonstrated by the enormous 123 percent growth at the Jakarta composite index and the 16 percent strengthening of Indonesia's Rupiah value against U.S. dollar last year.
"We are optimistic with Indonesia's economic outlook in 2010 as we expect that GDP growth to rise to 5.5 percent," Fauzy said, adding that Indonesia's GDP growth fell from 6.1 percent in 2008 to 4.4 percent in 2009.