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‘Virtuous’ Indonesia Has Growth Leverage, Morgan Stanley Says

From bloomberg.com

Indonesia’s “virtuous” efforts to trim its budget deficit have given the government scope to significantly increase spending to stoke economic growth, according to Morgan Stanley.

“Indonesia should leverage its public finances to ramp up development spending as the economy suffers from infrastructure bottlenecks,” Deyi Tan, an economist at Morgan Stanley in Singapore, said in a report today. “We calculate that the government has room to raise expenditure by around 3 percent of gross domestic product.”


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