The purpose of this research is to make a prediction on the economic condition of Central Java in 200 I and it's impact or effect on the economic condition on 2003-2005 considering the economic condition in the year 2002. This research is a qualitative and quantitative research using the trend analysis. Economic condition in year 2003-2005 is not quite exciting, because the economic growth is no more than 3 % per year. The inflation rate is approxi• mately in the range between 10 %- 13 %. The investment either Foreign or Domestic is raising, but this situation depends on socio-political condition, law enforcement, and the condition which could atract investors. Export and import are also rising although it is not significant enough. It is recommended that The Provincial Government could increase investment by giving facilities to the investors, minimalize the labour's unrest, making proper infrastructure and improving tourism.
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