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Indonesia seen as ‘bright spot’ amid global economic gloom
IMF projects ‘healthy’ growth, as country fares better than others in withstanding the shocks of the pandemic and Russia’s war in Ukraine. But there are risks of falling into debt crisis.
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A fisherman casts a net at sunset at Cunda estuary in Lhokseumawe, Aceh, on July 15, 2022.
(AFP/Azwar Ipank)
W
hile the global inflation crisis darkens the economic prospects of many countries, with some expected to face recession this year, the International Monetary Fund has painted an optimistic outlook for Indonesia, which has fared better than other countries in withstanding the shocks of the pandemic and Russia’s war in Ukraine.
IMF managing director Kristalina Georgieva praised the country’s economic performance, pointing to several projections that the country will grow 5 percent in the full year, and to how it has maintained its inflation rate of slightly over 4 percent, which is lower than the rest of the world.
She said the financial body expected Indonesia to finish this year with “very healthy” growth, and dismissed predictions that the country was on the verge of recession.
“On a darkening horizon, Indonesia is a bright spot. […] Bravo to [Indonesia],” said Georgieva, commending how the country handled the current global economic turmoil during her visit to Sarinah department store in Jakarta on Sunday.
The head of the IMF visited Sarinah after she met President Joko “Jokowi” Widodo at the Bogor Palace in Bogor, West Java. Georgieva arrived in Jakarta after attending the third Group of 20 Finance Ministers and Central Bank Governors (FMCBG) Meeting in Bali.
Read also: G20 finance chiefs agree to battle food insecurity, funding for vulnerable countries
The Bali meeting commenced amid a gloomy economic outlook across the globe with the United States and China predicted to enter recession.
