Jakarta (Antara) - Bank Indonesia (BI) revised down its prediction of economic growth in 2014, from its initial 5.5-5.9 percent to 5.1-5.5 percent. "The factor that had made us revise the economic growth target down is the revision of export performance," BI governor Agus Martowardojo said at a press conference here on Thursday. He said initially BI predicted that real exports (goods and services) would grow 8.1- 8.5 percent but in reality in the first quarter the growth of real exports was lower between 1.5 percent and 1.9 percent. "The drop in the real exports was caused by three factors, namely slow domestic demand, low price of export commodities and impact of the implementation of the law on minerals and coal," he said. Based on Bank Indonesia's assessment, global economic recovery is still continuing. Improvement in global economic conditions is primarily driven by economic conditions in advanced countries, such as the United States and Europe, as the impact of the monetary stimulus is still continuing. The improvement in the global economic conditions had led to an increase in the volume of world trade, he explained. "However, China's growth had slowed after it implemented a policy to balance its economy. The price of commodities also tended to decline, especially that of rubber, copper and coal," he said. (*) Reporting by Citro Atmoko


Editor : Tunggul Susilo
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