Indonesia's Q4 GDP likely contracts 1.4-2%

JAKARTA: Indonesia's economy contracted by 1.4% to 2.0% in the fourth quarter from the previous three months, though full-year growth was 5.7%, Finance Minister Chatib Basri said on Monday.

"Leading indicators in Q4 showed loan growth started slowing, a decline in cement sales, a slow down in import of capital goods and a decrease in oil lifting," Basri said.

He also said the current-account deficit, which has been a major worry for investors, will be 3.5-3.7% of gross domestic product (GDP) in 2013 and decline to 2.7-3.2% in 2014.

"The policy taken by the government since August to ease current account deficit has shown results," Basri said – Reuters.