Indonesia’s latest budget for next year points to a slight widening of the deficit, compared with its earlier estimate. This, along with a statement today from the new finance minister, who called the country’s fiscal rules “arbitrary,” is likely to further fuel concerns over the government’s recent shift towards more populist economic policies.
Meanwhile in Sri Lanka, GDP figures published earlier this week show that economic output remains far below pre-crisis levels. This is helping to keep inflation subdued and is likely to prompt another rate cut at the central bank’s meeting next week.
Note: We’ll be discussing recent developments in Indonesia and the likelihood of further monetary and fiscal stimulus in India and China in a Drop-In on Thursday, 25th September at 09:00 BST/16:00 SGT. Register here.
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