Indonesian GDP misses projections in Q1

(MENAFN) Indonesian economic growth missed projections in the January-March period due to interest-rate increases last year which limited investment and a mineral-ore ban hurt the mining industry, Bloomberg reported. According to the Central Bureau of Statistics said in Jakarta, Gross Domestic Product (GDP) grew by 5.21 percent in the first quarter of 2014 compared to a year earlier. Indonesian government said it will cut its budget forecast for GDP growth to 5.8 percent in 2014 from an earlier projection of 6 percent. "Tight monetary policy, along with weak demand for commodity exports, will prevent a bounce-back to the 6 percent-plus growth rates that not long ago looked like the norm," a Singapore-based economist at Capital Economics said.