Indonesia`s Economy Grows to 5.3 Percent in 2018: World Bank

A World Bank executive walked past the World Bank Group logo.

Jakarta, 21 Ramadan 1438/16 June 2017 (MINA) – Indonesias real GDP growth is projected to increase from 5.2 percent this year to 5.3 percent in 2018, Antara news reported, citing the World Bank’s June 2017 Indonesia Economic Quarterly.

“Real GDP growth strengthened to 5.0 percent (year-on-year) in the first quarter of 2017 compared to 4.9 percent in the previous quarter, driven by a rebound in government consumption and surging exports,” Rodrigo A Chaves, World Bank Country Director for Indonesia, said during the launch of the report here on Thursday.

According to the World Bank, Indonesias economy began in 2017 on a strong footing, enabled by a more supportive global environment and improved domestic fundamentals.

Such growth forecast is in line with the expected increase of global GDP from 2.7 percent this year to 2.9 percent in the period of 2018-2019.

“Indonesias economic fundamentals are improving. Hence, the outlook continues positively. This is good news that adds growth potential to be less vulnerable to global shocks,” Rodrigo said.

Fiscal performance in the first half of 2017 is strong, with improved revenue collection compared to last year and a better quality of expenditure.

Private consumption is expected to increase with moderate inflation, stable exchange rate, stronger consumer confidence, and low consumer lending rates.

Supported by stronger fiscal revenues, the recovery in government consumption seen in Q1/2017 is expected to continue.

In the baseline estimate, investment is expected to strengthen due to continued recovery in commodity prices, increased investor confidence supported by S & P rating upgrades, and declining commercial lending rates.

Export growth is expected to rise this year and remain strong in 2018, supported by strong external demand as global economic growth accelerates and global trade recovers. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)