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RI growth to moderate despite China reopening
Indonesia and other developing East Asia Pacific (EAP) countries are projected to moderate growth despite China's reopening bringing momentum for the region to attain higher growth.
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The World Bank headquarters is seen in Washington, DC, the United States, in this photo dated Jan. 10, 2022. (AFP/Stefani Reynolds)
T
he reopening of China's economy is forecasted to accelerate growth in developing East Asia Pacific (EAP), but the World Bank said most developing countries in the region, including Indonesia, was expected to moderate instead.
The World Bank said the region’s strong growth could be held back this year due to slowing global growth, elevated commodity prices and tightening financial conditions in response to persistent inflation, according to the World Bank’s East Asia and Pacific April 2023 Economic Update.
The growth in EAP is forecasted to accelerate to 5.1 percent in 2023 from 3.5 percent in 2022, following China’s reopening that allows its economy to rebound to 5.1 percent this year from 3 percent last year.
However, growth in Indonesia is projected to slide to 4.9 percent this year, much lower than the 5.3 percent it achieved last year. The World Bank’s recent 2023 projection to Indonesia is also much lower than it estimated back in October at 5.1 percent.
This is in line with the growth for the region without China included that is projected to moderate to 4.9 percent from 5.8 percent in 2022, the same data shows.
“Most major economies of East Asia and the Pacific have come through the difficulties of the pandemic but must now navigate a changed global landscape,” said World Bank East Asia and Pacific Vice President Manuela V. Ferro in a press statement on Friday.
“To regain momentum, there is work left to do to boost innovation, productivity, and to set the foundations for a greener recovery,” she added.
