JakartaGlobe-July 21, 2022
The Asian Development Bank (ADB) has revised up its growth forecast for Indonesia to 5.2 percent this year, reflecting the country’s robust domestic consumption and windfall revenue from high global commodity prices. The latest projection was 20 basis points higher than the multinational lender’s previous forecast in April of 5.0 percent. “Economic activity in Indonesia continues to normalize while Covid-19 infections remain manageable, despite a recent rise in the number of cases,” Jiro Tominaga, ADB’s country director for Indonesia, said in a statement Thursday. Still, the supplement projected the largest economy in Southeast Asia would experience higher inflation this year at 4.0 percent, compared to ADB’s 3.6 percent projection in April, due to high commodity prices. “Inflation has risen, hurting households’ purchasing power. However, high prices for key commodity exports are generating windfall export earnings and fiscal revenue, enabling the government to provide aid for costlier food, electricity, and fuel while still reducing the budget deficit,” Tominaga said. Indonesia’s economy expanded 3.69 percent in 2021 after shrinking xx percent a year earlier due to restricted economic activities needed to curb the pandemic. The country has so far managed to control the spread of Covid-19, with daily new cases averaged at 5,100 per day, far lower than its neighbors in the region. Read more at: https://jakartaglobe.id/business/adb-upgrades-indonesias-growth-projection-to-52-in-2022-amid-developing-asia-slowdown
