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Stimulus in Korea, Jokowi’s second term, IMF forecasts

GDP figures due to be released next week are likely to show Korea’s economy remained very subdued in Q3 – we have pencilled in growth of just 0.4% q/q. But with fiscal and monetary policy being loosened aggressively, the economy should stage a gradual recovery over the coming year. Joko Widodo’s second term as Indonesia’s president begins on Sunday. While the inauguration itself will be largely ceremonial, one thing worth watching will be the make-up of Jokowi’s next cabinet. Close attention will be paid to the future of highly-regarded finance minister, Sri Mulyani.

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