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IMF keeps RI growth forecast at 5% amid lower Asian projection
The IMF has maintained its growth projection for Indonesia amid a general downward revision for Asian economies in its October outlook.
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A vendor arranges containers filled with cooking oil at Tanah Abang Market in Central Jakarta, in this file photo taken on Nov. 11, 2015. (JP/Nurhayati Adi)
T
he International Monetary Fund (IMF) has maintained Indonesia’s growth forecast at 5 percent for this year while lowering its projections for other emerging economies in Asia, with India being the only other exception.
Indonesia’s economy is expected to keep to its projected growth path of 5 percent in 2023, according to the IMF’s latest World Economic Outlook published on Tuesday.
This figure remains unchanged from the fund’s April report and puts Indonesia on a par with the IMF’s latest growth projection of 5 percent for China.
In China’s case, however, the latest projection is 0.2 percentage points lower than the fund’s April forecast, reflecting expectations of a stronger headwind from its real estate crisis and weakening confidence among businesses and consumers.
The growth projections for Indonesia’s ASEAN neighbors, namely Malaysia, the Philippines, Thailand and Vietnam, have been lowered by between 0.5 and 0.9 percentage points compared to the IMF’s April outlook.
In contrast, the IMF revised its projection for India upward by 0.4 percentage points from its April figure to 6.3 percent, reflecting stronger-than-expected consumption through June.
Overall, the IMF expects growth in Asia’s emerging markets and developing economies to slow by 0.1 percentage points to 5.1 percent compared to its April outlook. This is also in line with the fund’s slower global forecast of 3 percent growth, down from 3.6 percent in its previous report.
