Economists’ insight: Credit won’t be a growth catalyst for US consumer spending (p. 1)
› Consumer lending growth in the US eased in January after banks tightened lending conditions in response to higher delinquency rates.
› Leading economic indicators for the Euro zone show that its economy is continuing to gain speed. The slowdown in lending to non-financial corporations should not last.
Focus on Indonesia: Making the most of demographic trends (p. 4)
› Demographic trends in Indonesia are highly attractive and similar to those seen in India.
› Domestic GDP growth appears firm, driven by consumer spending. For this to last, the country will have to broaden its tax base and make its labour market more flexible.
› Decisions of the US Federal Reserve affect Indonesian monetary policy, but the growth climate and the government’s planned reforms could make domestic bonds appealing to investors. Its currency should remain stable or rise slightly.