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LPEM FEBUI Quarterly Economic Outlook 2018 Q3

Author

Listed:
  • Febrio Kacaribu

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Alvin Ulido Lumbanraja

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Syahda Sabrina

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

Persistently muted household consumption growth, which is still under 5%, signals that households remain very vigilant to fluctuations in income growth and external risks despite very low and manageable inflation. Under better circumstances, both government and central banks might want to push growth further by relaxing monetary policies and increasing government expenditure. However, both fiscal, current account, and capital flow positions do not give much room for expansionary policies. Indeed, central bank has increased benchmark interest rate by 100 basis points and the government has pledged to postpone some infrastructure projects to2019 and beyond to contain current account deficit.

Suggested Citation

  • Febrio Kacaribu & Alvin Ulido Lumbanraja & Syahda Sabrina, 2018. "LPEM FEBUI Quarterly Economic Outlook 2018 Q3," LPEM FEBUI Quarterly Economic Outlook 201803, LPEM, Faculty of Economics and Business, University of Indonesia, revised Mar 2018.
    • Handle: RePEc:lpe:queout:201803
    as

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    File URL: https://www.lpem.org/repec/lpe/queouts/IEO201803.pdf
    File Function: First version, 2018
    Download Restriction: no
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