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World Bank cuts RI’s 2025 growth forecast
The bank’s global growth forecast for the year was revised down as well.
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World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank on Oct. 10, 2023. (Reuters/SUSANA VERA)
T
he World Bank has revised down its forecast for Indonesia’s 2025 GDP growth to 4.9 percent, in line with a cut to its global growth projection for that year.
The forecast for Indonesia, outlined in the bank’s Global Economic Prospects report, fell from the bank’s June 2023 projection of 5.0 percent growth in 2025.
The international lender has kept its 2024 growth forecast for Indonesia at 4.9 percent.
The World Bank said East Asia and the Pacific would see solid domestic demand as a main driver of growth, as modest inflation would help sustain household spending, but it expected investment in the region to be more subdued this year.
It expects the world to see its slowest half-decade of GDP growth in 30 years by the end of 2024 amid heightened geopolitical tensions.
It also predicts the world economy will grow 2.7 percent next year, lower than its previous projection of 3 percent, but it has maintained its projection of 2.4 percent for this year.
Read also: World Bank sees stagnant FDI, slowdown in growth for Indonesia
