Monday, November 18, 2013

Outlook for Indonesia : Prospects are still pretty strong

Nouriel Roubini
Nouriel Roubini
Question: You’re known as Dr. Doom, the man who usually has a bearish forecast for the global economy. And yet, you have always had a positive outlook on Indonesia. What’s behind your faith in the Indonesian economy?

Nouriel Roubini : First of all, I don’t think I’m Dr. Doom. I’m Dr. Realist. I try to correctly understand what’s going on in the global economy. A few years ago, there was a global financial crisis, but now there is recovery. The emerging markets for the last few years have done overall much better than advanced economies.

And if I look at Indonesia, I would say that the medium-term prospects are still pretty strong in terms of actual and potential growth, being at least 6 percent if not higher. The existence of external deficit, slightly higher than target inflation, has led to some concerns and some financial pressures on the currency, the bond market and the equity market.

But even with the short-term noise and volatility, if you look at medium-term, long-term fundamentals, I think this is still an economy that is very sound. So, you have to be realistic about different countries in the world. - in The Jakarta Post

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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