REPUBLIKA.CO.ID, JAKARTA -- Indonesia's economy is estimated to grow 5.3-5.5 percent by the end of 2014. Chief of Economist in PT Bank Mandiri, Destry Damayanti said that national economy slowed to 5.21 percent in the first quarter of 2014.

Damayanti predicted that the economic growth would still at 5.1-5.2 percent in second quarter of 2014. However, she believes that the figure will grow in future.

"There will be improvement in third and fourth quarter. We project the total growth of 5.3 percent in 2014," Damayanti said recently as reported by Satya Festiani.

Household consumption growth is predicted to be in range of 5.5-5.6 percent in 2014. Investment began to increase, especially in machine tools.

The external factor still becomes a problem, such as export and import performance. Export demand is still low because of Chinese economic slowdown, approximately 7-7.5 percent this year. Hence, current account deficit will increase to 3.1 percent of gross domestic products (GDP) in the end of the year caused by BI benchmark rates at level of 7.75 percent in the third quarter.

"We have a structural problem. BI cannot handle this problem itself," Damayanti said. Mutia Ramadhani

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