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World Bank keeps RI GDP growth forecast at 5.1% but still has some gripes
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People queue to purchase subsidized cooking oil provided by the local government in Surabaya on Feb. 18. (AFP/Juni Kriswanto)
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mid rising global interest rates and an escalating war in Ukraine, the World Bank remains largely positive about Indonesia’s economy.
In a virtual press conference on Tuesday, the World Bank maintained its GDP growth forecast for the country at 5.1 percent in its baseline scenario, the same figure the institution had published back in April.
This comes at a time when the growth outlook for much of the rest of the world has worsened significantly.
Since the United States Federal Reserve committed to a sustained effort to tame inflation through aggressive interest rate hikes, developed and emerging economies have been raising their own interest rates to protect their currencies.
Indonesia is no exception, with Bank Indonesia (BI) hiking its benchmark 7-day reverse repo rate by 50 basis points (bps) on Sept. 22, more than most economists had predicted.
Vietnam is set to enjoy the highest 2022 growth rate among the emerging economies of Southeast Asia at 7.2 percent, followed by the Philippines and Malaysia with 6.5 percent and 6.4 percent growth, respectively.
Thailand’s economy is expected to grow by a more modest 3.1 percent.
