Indonesia's economy expanded 6.2% in 2008, the finance ministry said on Thursday, slowing slightly from 6.3% in 2007 when the country enjoyed its fastest growth in a decade, Reuters reported. However, the government has warned that 2009 would be tougher, with growth seen at between 4.5% and 5%. Inflation in 2008 was 11.1%, in line with government forecasts and tax revenue amounted to Rp658.7 trillion ($60.71 billion), Rp49.4 trillion above the government's target.
"Generally the actual macroeconomic indicators were good although in the past few months there has been some significant pressure from the global financial crisis," the ministry said in its statement.
The budget deficit was 0.1% of Gross Domestic Product (GDP), the finance ministry said in a statement, The Jakarta Globe reported. The figure was far below the amended budget figure of 2.1%.
The finance ministry said on Thursday the previous deficit projection was due to higher-than-expected state revenue plus grants from foreign donors, and below-target spending. In monetary terms, the 2008 deficit was Rp4.2 trillion, far less than the revised estimate of Rp94.5 trillion. Revenue plus grants were recorded at Rp981 trillion ($90.25 billion), 9.6% higher than expected, while overall state spending was 91.5% of budgeted amounts.