ADB Raises Its 2022 Growth Forecast for Indonesia to 5.2 Percent Thanks to Healthy Domestic Demand

- 03 August 2022 14:25 WIB
The ADB Headquarter in Manila. (Photo courtesy of ADB.org)
The ADB Headquarter in Manila. (Photo courtesy of ADB.org)

JAKARTADAILY.ID – The Asian Development Bank (ADB) raised its growth forecast for Indonesia to 5.2 percent this year due to healthy domestic demand and steady export growth.

The revised projection in the Asian Development Outlook (ADO) 2022 Supplement, released on July 21, 2022, is up from the bank’s April forecast of 5.0 percent.

Also read: ADB Invites Indonesian Suppliers to Participate in a Virtual 'Business Opportunities Seminar' on July 27 to 28

"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.

Also read: ADB Says Its Operations Reaches .8 Billion in 2021 to Boost Pandemic Response and Promote Green Recovery

“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."

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Editor: Suksmajati Kumara

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