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World Bank sees Indonesia’s GDP rebound to 5.1 percent this year
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An aerial photo shows downtown Jakarta on the first day of 2022. (AFP/Bay Ismoyo)
I
n a wide-ranging assessment of how global macroeconomic developments impact the East Asia and Pacific region, the World Bank sees Indonesia benefiting from its position as a major commodity exporter.
“Indonesia's growth is expected to rebound to 5.1 percent in 2022, supported by stronger domestic demand and elevated commodity prices, and is expected to amount to 5.3 percent in 2023,” the World Bank stated in a report published on Tuesday.
The expected rate is in line with a projection in May for full-year GDP growth of 5.17 percent.
Read also: GDP growth steady but inflation rising fast
At the projected rates, Indonesia’s GDP growth this year would outperform Thailand’s at 4.3 percent but lag well behind the expected increases in the Philippines and Malaysia at 5.7 and 5.5 percent, respectively.
The World Bank’s Global Economic Prospects report for East Asia and the Pacific (EAP) projects pandemic-related lockdowns in China to hold back the region’s economic recovery, with overall EAP growth expected to slow this year to 4.4 percent.
China’s economy is seen to expand by only 4.3 percent in 2022, below its estimated potential, but other countries of the region are expected to fare better “as buoyant domestic demand helps to offset weakening exports, assuming that the economic impact of the war in Ukraine gradually fades”.
