JAKARTA, INDONESIA (21 July 2022) — The Asian Development Bank (ADB) has raised its growth forecast for Indonesia to 5.2% this year due to healthy domestic demand and steady export growth. The revised projection in the Asian Development Outlook (ADO) 2022 Supplement, released today, is up from the bank’s April forecast of 5.0%.
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 5.0% in 2022, up from its April forecast of 4.9%.
The report sees higher inflation in Indonesia this year at 4.0%, compared to ADB’s 3.6% projection in April, due to high commodity prices. For 2023, ADB projects the Indonesian economy to grow by 5.3% and inflation to be 3.3%.
“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.”
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.