Inflation has been falling across Asia, and the Q4 GDP data released so far show that growth is slowing too. For the most part, we expect these trends to continue. But Indonesia is an important exception. This week’s figures are likely to show that growth remained strong in Q4. Moreover, unlike in the rest of the region, inflation looks set to rebound, potentially complicating the policy choice for the central bank in the event that global demand slows.
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