Wed, 30 Jun 2010

Makassar (ANTARA News) - The World Bank predicts Indonesia`s economy will continue to grow although economic reports in the first quarter showed uncertainty in the world market.

World Bank senior economist Enrique Blanco Armas said here on Tuesday the country`s economy is expected to rise slowly in 2011 due to domestic demand.

New upheavals in the world financial condition and uncertainty with regard to economic views that are developing have increased risks to weaken short-term forecasts.

He said Indonesia`s economy would reach above seven percent in the long term if the ambitious reform agenda put in the 2010-2014 national development planning was met.

He said imports would increase surpassing exports while inflation would also increase in line with higher lending rates and commodity prices.

He said the government`s income would be higher and deficit could be smaller than predicted before.

He said the World Bank records Indonesia`s economy would grow from 5.7 percent in the first quarter to 6.5 percent in the thrid quarter.