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Indonesia’s economy to slightly recover in 2020 as global uncertainties ease
Indonesia’s economy grew by 5.02 percent in the third quarter last year, the slowest growth in more than two years.
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Jakarta landscape is pictured in this undated photo. (JP/Ricky Yudhistira)
I
ndonesia’s economy is expected to perform slightly better in 2020 on the back of improved commodity prices and easing external pressures, economists have said.
In its latest Global Economic Prospect report, the World Bank forecast Indonesia would book 5.1 percent gross domestic product (GDP) growth in 2020 and 5.2 percent in 2021. The figures were 0.2 percent lower compared with its June 2019 projection.
“Growth in Indonesia, which depends less on export growth than other regional economies, is projected to tick up to 5.1% [in 2020] reflecting continued support from private consumption, a pickup in investment, growth of the working-age population and improving labor markets,” the Washington-based development bank wrote in a statement.
Global growth, meanwhile, was set to pick up by 2.5 percent this year, higher than the 2.4 percent projected for 2019, driven by higher growth in emerging markets and developing economies, amid a recovery in global trade and investment.
Indonesia’s economy grew by 5.02 percent in the third quarter last year, the latest data available, constituting the slowest growth in more than two years. Consumer spending, which accounts for more than half of GDP, stagnated while investment cooled and exports slumped.
This year, the government expects to achieve 5.3 percent growth as stipulated in the 2020 state budget.
Samuel Sekuritas economist Lana Soelistianingsih expressed optimism that the economy could grow faster this year compared with 2019 amid dissipating global uncertainties.
