ECONOMIC INDICATORS

Economic indicator is used to know how well the economic growth in a country. It is present the economic conditions of this country. The stability of macro economy is stable, health fiscal condition and the good banking condition are general indicators of economy.
1. Inflation
If the inflation increase, the cost of production will be increase, then it make the price of products in market will be increase too. These conditions make the market not competitive. In other hand, it also makes the export activities going down, and the impact is the decreasing of national income.
2. Gross Domestic Product
If the consumption level of society is high, its reflect to the increasing in GDP. It shows that the country is prosperous, because it has high purchasing power. Increasing the use of domestic product also make the domestic market stronger.
3. Foreign Exchange Reserves
Foreign Exchange Reserves is a savings of foreign currency by central banks and monetary authorities.
4. Interest Rate
If the interest rate increase, it make the banks is more attractive than capital market.
So, market index of capital market will be decrease.
5. Stock Price Index (IHSG)
Increased activity in the stock exchanges provide a positive prospect for the national economy, so that IHSG could be one of the positive economic indicators that are important in Indonesia.
6. Unemployment
The unemployment rate is an indicator that can provide real conditions in various economic sectors.
7. Foreign Currency Exchange Rate
Foreign Currency Exchange Rate is the value or the comparison can be also called the exchange rate between a currency against other currencies.
8. Oil Prices
The changes in oil price will be a significant effect on the economy
9. Export-import
Increased export import activities reflect to the increasing on the national economy.
10.Purchasing Power Parity
Purchasing Power Parity is a method used to calculate an alternative exchange rate between the currencies of two countries.