The Macroeconomic Conditions of Indonesia - 975 Words

The macroeconomic conditions of Indonesia are moderately challenging. The World Bank (2012) categories Indonesia as a lower middle income country. The CIA World Factbook (2012) notes that the country still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment and unequal resource distribution among regions. Indonesias GDP is $1.125 trillion per year (PPP), which places it as the 15th-largest economy among nations, behind Canada and ahead of Turkey (CIA World Factbook, 2012). Indonesias GDP is growing steadily a strong rate. World Bank figures have the countrys GDP growing at 6.46% in 2011, 6.2% in 2010 and only dipping below 5% growth once in the past five years, when GDP grew at 4.63% in 2009. Indonesia outperformed most of its regional peers (save China) in posting growth in 2009. There is a caveat to this growth in that the GDP per capita is growing at a slower pace than the GDP is growing. Indonesias population is growing rapidly, and the country is becoming younger. In the long run, this will spur further growth, but in the short run the young population is actually constraining growth because so many Indonesians are still below working age. This comparison is relevant because population growth is a key driver of GDP growth, and looking at the GDP per capita growth helps to understand what component of GDP growth is driven by population increases as opposed to organic expansion. This growth hasShow MoreRelatedMalaysia s Income Inequality Trend Essay863 Words   |  4 Pagesmost volatile GDP per capita and GDP per capita growth rate whereas Indonesia has most stable GDP per capita and GDP per capita growth rate which are unaffected by global economic recession and other global economic factors. Figure 5. GDP per capita from 2007 to 2015 Figure 6. GDP per capita growth rate from 2007 to 2015 4. Income Inequality Figure 7. 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India is reforming relations across levels of government to empower the states and make policies more responsive to local conditions. Some states have taken the lead in improving the ease of doing business and now enjoy higher productivity and income. Additional efforts to showcase reform efforts at the state level and identify best practices will support the reform process andRead MorePerformance Management : Npm Of The Undisputed And Contested Characteristics Of Npm1480 Words   |  6 PagesRegarding to the focus of the dissertation on Indones ia, which is one of South East Asian countries, some regional sub-groupings of Southeast Asian developing states will be use in next chapter, such as administrative traditions and legacies . One of the sub groupings is on general reform outcome in Southeast Asian countries that Cheung (2010) considered to be slow, while another studies by Rhodes et al. (2012) concludes that the progress of reform in Indonesia, specifically is fast. Although this comparison