Interestingly, when we remove Organization for Economic Co-operation and Development (OECD) countries from our sample, the effects of banking crises were more pronounced, indicating that banking crises in emerging market countries likely do more harm to the overall economy than in developed countries.
Indonesia’s economic outlook is favorable. Growth is projected to reach the upper level of 5.5–6.0 percent range in 2010, rise to 6.0–6.5 percent in 2011 and is expected to gradually returning to trend growth rates approaching 7.0 percent thereafter, on the back of the upturns in export growth following ongoing global economic recovery as well as investment acceleration.