Jakarta – Indonesia announced Monday its economy grew by 3.32 percent last year, lower than the government's forecast of 3.5 percent but higher than many of its neighbours.

Kusmadi Saleh, deputy chairman of the Central Bureau of Statistics, said gross domestic product (GDP) in the fourth quarter was down 1.21 percent from the third quarter but up 1.6 percent compared to the same period the previous year.

Bank Indonesia (the central bank) has forecast GDP growth of 3.5-4.0 percent for this year while the government forecasts 4.0 percent.

Indonesia has suffered less than its regional neighbours from the US slowdown, partly because its exports are less centred on high-technology items.

Analysts said a total of 15 days of public holidays in the fourth quarter slowed down production activity.