Experts believe that this is a temporary improvement
In the fourth quarter of 2013 economy has achieved higher performance than expected by analysts. In the period from October to December, GDP grew by 5.7 %, while experts predicted 5.3% growth. The increase in exports offset the lack of domestic demand and weak investment inflows, Financial Times reports.
The country's authorities hope that positive economic data reassure investors who recently have concerns with markets.
Data on the Indonesian economy are contradicting the two-year downward trend in quarterly GDP. Moreover, according to an economic report, the country has decreased inflation and increased sales figures.
However, despite the positive data in last three months of 2013, the general state of the Indonesian economy deteriorated last year. GDP growth was 5.8%. This is the slowest rate of development from the global financial crisis in 2009.
Investors believe that Indonesia is not a stable market for investment, as in the case of capital outflows the economy is affected severely. Experts caution that it is impossible to judge the state of the economy, according to another successful quarter. Indonesia has yet to solve the serious medium term problems, including the deficit on current account. Despite this, the government assures investors that economic growth in 2014 remains the same.
