TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
IMF revises up Indonesia's economic growth amid global decline
The IMF’s latest forecast put Indonesia’s GDP growth on a 5 percent path in 2023, on a par with China’s growth projection at 5 percent this year, which the IMF decided to keep unchanged.
Change Size
Women carry fruit and vegetables in baskets on their heads at a market in Denpasar, Bali, on Nov. 7, 2022. (AFP/David Gannon)
T
he International Monetary Fund has revised up its outlook on Indonesia’s economic growth despite the fund projecting much lower figures for the global economy amid prolonged economic uncertainty and geopolitical strains.
The IMF’s latest forecast put Indonesia’s GDP growth on a 5 percent path in 2023, according to the fund’s World Economic Outlook report in April, 0.2 percentage points higher than the fund’s January report.
The figure also puts Indonesia almost on a par with China’s growth projection at 5.2 percent this year, which the IMF decided to keep unchanged compared with its January report.
By contrast, the IMF lowered its outlook for the global economy to 2.8 percent, 0.1 percentage point lower than its January forecast.
Faisal Rachman, economist at state-owned lender Bank Mandiri, said the fund’s more optimistic outlook for Indonesia was due to the country’s solid domestic economy. This would allow the economy to remain resilient in 2023 despite flagging global growth.
“Domestic activities, especially consumer spending, have normalized and even increased, thanks to improving mobility and a declining inflation rate,” Faisal said in a statement on Wednesday.
Read also: IMF issues growth warning as it lowers 2023 forecast
