"Indonesia’s revised growth forecast in the supplement to ADB’s flagship economic publication is consistent with an improved outlook for Southeast Asia. For the region, ADB now projects growth of 5 percent in 2022, up from its April forecast of 4.9 percent," the Manila-based lender said in the statement.
The report sees higher inflation in Indonesia this year at 4.0 percent, compared to ADB’s 3.6 percent projection in April, due to high commodity prices. By 2023, ADB projects the Indonesian economy to grow by 5.3 percent and inflation to be 3.3 percent.
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“Economic activity in Indonesia continues to normalize while COVID-19 infections remain manageable, despite a recent rise in the number of cases,” said ADB Country Director for Indonesia Jiro Tominaga.
"Inflation has risen, hurting households’ purchasing power. High prices for key commodity exports, however, 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."