Country Analysis Report Indonesia Indep

The data from the World Bank also indicates that Guatemala experienced a rapid growth of economy from 2005 to 2007. The world financial crisis affected this country a lot, making the real GDP growth drop to 0.5% in 2009 from 6.3% in 2007. After 2009, Guatemala has been struggled to recover from crisis. Although the real GDP growth in 2011 reached 4.2%, it dropped again to 3.0% in 2012. It is estimated that it will drop again to 3.4% in 2014 from 3.7% in 2013.

The economic growth rate is sluggish at best with the year 2005 having a growth rate of 5.25 percent and 2006 having a slightly lower growth rate than the prior year. Many of these setbacks are due to the

First, the economic growth is not performed well, because the GDP annual growth is below average, which fluctuates between 1% to 2%. The inflation rates also are below initial expectation, which is only stand for around 1.7% and it started to reach deflation. Even though, the economic growth decline, the unemployment rate is remained stable at the point around 5.7 percent. The living standard also remain in the same rate. However, the gap between the richer and poorer increases with almost 13-percentage point.

The good aspect is that the economists are trying to overcome the recession and according to Federal Open Market Committee (FOMC), the real gross domestic product will grow by the end of this year at about 3.5%. GDP has also increased its value in the past three quarters continuously (El-Agraa, 2011) making annual GDP growth rate 3.6%. The consumer price index was at 230 in April 2012 and the inflation rate for the current year is 2.3%

Indonesia has been independent for just over half a century. In this short time the country has had to adjust to the demands of the modern world.

a mere 2% growth per annum, despite GDP growth peaking at a remarkable 7.5% in 2010. This

risen to seventh in the world, and its economy is growing at over nine percent

Indonesia can best be described as a powerful emerging market. Indonesia has managed to relinquish its former status as a third world country and make a name for itself in the world market. Currently, it is the third largest populated country in Asia with 254.5 million, right behind China and India respectively.5 It has the sixteenth largest economy as of 2014 based off

Indonesia is the largest economy in South-East Asia; it has progressed into a decentralized electoral democracy and has managed to reduce its overall poverty from 17 percent in 2004 to 11 percent in 2014. However, despite their steady economy and major improvements, nearly 40 percent of Indonesia lives just above the poverty line. Additionally, Indonesian public services and health standards fall behind other middle-income countries; these facts combined with their high rates of maternal mortality, child malnutrition, and insufficient access to education place Indonesia in the developing or Third World realm. Indonesia’s history, geographic position, abundance of natural resources, wars and conquest, as well as trade has fundamentally shaped the economic and political structure. Furthermore, leadership influence, intervening forces, and its colonial masters have also played a large role in constructing the systems of this developing country.

Too much focus on commodities will not help to further grow their economy as commodity prices are generally lower than manufactured goods, and are volatile, very much determined by world market forces. When prices drop, it will affect Indonesia’s export income greatly. Therefore, a shift in focus will help to make the economy more stable.

More than 21 million people in Indonesia died because of starvation, more than 1 million children can’t receive education in schools cause economy factors, and more than 28 million people is struggling against poverty.

From 2006 to 2007, Japan’s inflation rate took a rapid increase from negative inflation in 2006 to positive inflation rate in 2007. This sharp increase in inflation rate was likely to be due to the world’s shortage of rice crisis. As rice is Japan’s main source of stable food, the rice crisis push up rice prices globally, causing the inflation rate in Japan to rise sharply. Currently, there are speculation that Japan’s inflation rate may rose at the fastest pace in the decade as companies facing the global economic crisis may pass higher costs to consumers.

The unfavourable economic conditions could result in less business activity, less disposable income available to consumers to spend and reduced purchasing power will consequently reduce the demand for services which in turn will hit the business and financial condition. Recalling the past economic crisis in 1997 that hit the South Asia including Indonesia caused

Indonesia employs a foreign policy based on restraint and non-confrontation towards its neighbors; while at the same, time actively engages with rest of the world’s diplomatic community (Acharya 2014). Indonesia is a regional leader in Southeast Asia and holds a key position in a many of interrelated trade and financial organizations. Indonesia gained membership into the United Nations in 1950 and is a member of the Group of Twenty (G20) major economies. It is also a member of OPEC, as well as the World Trade Organization (CIA 2017). Indonesia was the founder of Non-Aligned Movement (Grant 1995), as well as the founding member of Association of Southeast Asian Nations (ASEAN) (Encyclopedia Britannica, 2017), Asia-Pacific Economic Cooperation, and the East Asia Summit (Encyclopedia Britannica, 2017).

Indonesia’s GDP increased rapidly increased in the period 2008 to 2010, whereas, Malaysia’s and Singapore’s GDP are at the same level.