ADB revises down Indonesia's growth forecast

Updated: 2011-12-06 16:46

(Xinhua)

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JAKARTA - The Asian Development Bank (ADB) has revised its growth forecast for Indonesia in 2012 from the initial 6.8 to 6.5 percent as the impacts of the debt crisis in Europe and US economic woe continue to deepen, a statement issued by the ADB said here on Tuesday.

The ADB, however, convinced that economies in East Asia would grow moderately amid the ensuing crisis in Europe and the United States.  

Through its latest report entitled "Asia Economic Monitor", the ADB said that despite all of those difficulties in the US and Europe, East Asia could still manage well the impacts coming from those two troubled economies.

"Policymakers in East Asia region must take a careful precautious stance in addressing the impacts of the crisis in Europe and the United States. They have to work collegially in intercepting the impacts that have been feared to incite ensuing a global economic recession," Iwan Jaya Aziz, head of the ADB regional economy integration office said in the statement.

The ADB furthermore forecast that the economy in East Asia region next year would slightly drop to 7.2 percent from 7.5 percent estimated earlier.

In a worst case scenario, the region might still gain a 5.4 percent growth despite of the crisis in Europe and the US. It was because the export differentiation conducted by several countries in the region would incite domestic growth.