"If the euro zone and the United States still fall into a deep recession the ADB predicts the Indonesian economic growth will drop by 1.0 percent to 5.5 percent," Head of the ADB Regional Economic Integration Office Iwan Jaya Aziz said.
Jakarta (ANTARA News) - The Asian Development Bank (ADB) has predicted the Indonesia economy will expand 6.6 percent this year while revising down its growth forecast for the country next year to 6.5 percent from 6.8 percent previously.

"If the euro zone and the United States still fall into a deep recession the ADB predicts the Indonesian economic growth will drop by 1.0 percent to 5.5 percent," Head of the ADB Regional Economic Integration Office Iwan Jaya Aziz said in a latest Asian Economic Monitor report released here on Tuesday.

The report also predicts the euro zone economy will grow 0.5 percent and the US economy 2.1 percent next year. The ADB said economies in the two regions will grow 1.7 percent and 1.6 percent respectively this year.

According to the report, the Chinese economy will likely grow at a moderate pace despite growing domestic demand. The ADB predicts the Chinese economy will grow 8.8 percent in 2012 after expanding 9.3 percent this year.

The ADB`s growth forecast for China next year is 0.3 percent lower than it projected earlier in September at 9.1 percent.

Economic growth in newly-industrialized regions such as Hong Kong, China, South Korea, Singapore and Taipei will slow down this year and next year mostly because they rely very much on international trade rather than on their neighboring countries. As a consequence, the newly-industrialized regions will be very much vulnerable to the contracted economic growth in Europe and the US, the report said.

The ADB noted that ASEAN economies will grow more slowly than it has projected earlier. Thailand which is facing a big problem because of the recent flooding will recover from supply disruption next year.

The Manila-based bank has predicted the Thai economy will slow 2.0 percent this year while defending its economic growth forecast of 4.5 percent for Thailand next year.(*)

Editor: Heru Purwanto
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