The central bank (Bank Indonesia/BI) said global economic growth in 2018 is projected to improve, despite the ongoing global liquidity rebalancing process. The global economic growth projection for 2018 has been upgraded from 3.8% to 3.9%, mainly due to US economic acceleration stemming from improving investment and consumption, amid the ongoing normalization of US monetary policy.
Economic growth in Europe is also predicted to accelerate, backed by exports and consumption as well as accommodative monetary policy. In the developing economies, China is expected to maintain solid growth as consumption and private investment increases and the economic rebalancing process progresses well. The promising global economic outlook will stimulate world trade and keep international commodity prices high, including oil, in 2018.