ADB Expects Indonesian Economy to Grow 5 Percent in 2024

The Asian Development Bank (ADB) has maintained its economic growth forecast for Indonesia.

IDXChannel - The Asian Development Bank (ADB) has maintained its economic growth forecast for Indonesia. Southeast Asia's largest economy is expected to grow 5 percent in 2024.

“Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year,” said ADB Chief Economist Albert Park in a media release on Wednesday (17/7/2024).

The developing Asia and the Pacific region is also expected to grow 5 percent this year, slightly higher than the previous outlook.

According to the latest edition of Asian Development Outlook (ADO) released today, after a post-pandemic recovery that was driven mainly by domestic demand, exports are rebounding and helping propel the region’s economic growth. 

Strong global demand for electronics, particularly semiconductors used for high-technology and artificial intelligence applications, is boosting exports from several Asian economies.

“The region’s fundamentals remain strong, but policy makers still need to pay attention to a number of risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions," Park stated.

While inflation is moderating toward pre-pandemic levels in the region as a whole, price pressures remain elevated in some economies. Food inflation is still high in South Asia, Southeast Asia, and the Pacific, in part due to adverse weather and food export restrictions in some economies. (WHY)