Indonesia's Economy Projected to Grow 3.5 Percent in 2021 and 4.8 Percent in 2022, Amid Covid Pandemic - ADB

- 23 September 2021 21:21 WIB
Indonesia's economy is expected to grow by 3.5 percent in 2021 and 4.8 percent in 2022 amid the Covid-19 pandemic, ADB report said. (Photo courtesy of ADB)
Indonesia's economy is expected to grow by 3.5 percent in 2021 and 4.8 percent in 2022 amid the Covid-19 pandemic, ADB report said. (Photo courtesy of ADB)

JAKARTADAILY.ID - Indonesia's economy is expected to grow by 3.5 percent in 2021 and 4.8 percent in 2022 amid the Covid-19 pandemic, as fiscal stimulus and social assistance are seen helping the downturn, according to a report released today by the Asian Development Bank (ADB).

"Indonesia’s economy had a relatively mild downturn in 2020, thanks to the government’s bold, timely policies to provide fiscal stimulus and social assistance to the vulnerable to prevent long-term economic scarring," said ADB Country Director for Indonesia Jiro Tominaga in a statement on Thursday, September 23, 2021.

"It continued to recover in the first half of 2021 due to those same policies and strong exports,” he added.

The ADB noted in its Asian Development Outlook (ADO) 2021 Update that exports and government spending are expected to be the country’s main growth drivers this year.

It added that supportive fiscal policy and accommodative monetary policy will also help sustain growth. Meanwhile, private consumption is projected to recover modestly before rising by 5 percent next year.

On the other hand, investment is expected to strengthen in 2022 as conditions normalize and improvements to the business climate set in.

"With global trade and finance facing headwinds, it will be critical for policymakers to continue to take steps to contain the pandemic, support economic recovery, and implement domestic reforms," ADB's Country Director Tominaga said.

H1 2021 growth

Indonesia’s gross domestic product (GDP) expanded by 3.1 percent in the first half of 2021 as mobility restrictions eased and demand picked up.

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Editor: Muhamad Al Azhari

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