Economy, Finance and Trade China: Heightened Capital Flight Is a Key Risk China Faces

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Macroeconomics

<p>Euromonitor International focuses on one of the key emerging markets with immense growth potential. To accelerate economic growth amidst numerous global challenges, Indonesia has been implementing various reforms. A series of interest rate cuts was carried out by the central bank to stimulate credit growth. Additionally, the government has been announcing large fiscal spending plans, with an aim to achieve an economic growth rate of over 7.0% annually, which it has not yet achieved, given soft commodity prices and a slowdown in China. Although, the economy grew at a robust pace of 5.0% year-on-year in real terms in 2016, which is expected to rise to 5.2% in 2017, it is not sufficient to generate enough revenue for the government’s ambitious plans, including eradicating all slums across the nation by 2019, amidst a high budget deficit and weaker than expected public revenue.</p>

Euromonitor International focuses on one of the key emerging markets with immense growth potential. To accelerate economic growth amidst numerous global challenges, Indonesia has been implementing various reforms. A series of interest rate cuts was carried out by the central bank to stimulate credit growth. Additionally, the government has been announcing large fiscal spending plans, with an aim to achieve an economic growth rate of over 7.0% annually, which it has not yet achieved, given soft commodity prices and a slowdown in China. Although, the economy grew at a robust pace of 5.0% year-on-year in real terms in 2016, which is expected to rise to 5.2% in 2017, it is not sufficient to generate enough revenue for the government’s ambitious plans, including eradicating all slums across the nation by 2019, amidst a high budget deficit and weaker than expected public revenue.

Economic Growth Rate, Although High, Remains Below the Govnt's Expectation