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Amid global gloom, ADB ups Indonesia GDP forecast
The Asian Development Bank (ADB) has raised its growth forecast for Indonesia to 5.2 percent this year while lowering its projection for most of Asia.
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Workers prepare fish for export to Japan, China, Brunei, Thailand and Malaysia at a facility in Banda Aceh, Aceh, on Oct, 27, 2020. (AFP/Chaideer Mahyuddin)
T
he Asian Development Bank (ADB) has raised its growth forecast for Indonesia to 5.2 percent this year due to what it calls “healthy domestic demand and steady export growth.”
The revised growth projection for Indonesia is stated in a supplement to the ADB’s flagship economic report for the region, the Asian Development Outlook (ADO). The supplement was released on Thursday.
In the previous forecast from April, the ADB had expected Indonesia’s economy to grow at 5.0 percent this year.
“Economic activity in Indonesia continues to normalize while COVID-19 infections remain manageable, despite a recent rise in the number of cases,” ADB country director for Indonesia Jiro Tominaga said in a press release on Thursday.
The ADB explains in the release that the upgrade for Indonesia was “consistent with an improved outlook for Southeast Asia,” and adds: “For the region, ADB now projects growth of 5.0 percent in 2022, up from its April forecast of 4.9 percent.”
The report sees 2022 inflation in Indonesia at 4.0 percent, up from the ADB’s 3.6 percent projection in April, due to high commodity prices.
“Inflation has risen, hurting households’ purchasing power,” Jiro said.
