Bank Indonesia Predicts 5.5% Economic Growth in 2022

• Feb 11, 2022

TEMPO.CO, Jakarta – Bank Indonesia predicts higher economic growth in 2022. The central bank estimated the domestic economy to grow up to 5.5 percent this year, higher than 2021’s 4.7 percent.

Bank Indonesia Governor Perry Warjiyo, said that the outlook is based on the support from vaccine rollout acceleration and the expanding reopening of economic activities. 

“As well as the continued stimulus policies from Bank Indonesia, the Government, and other relevant authorities,” Perry said in an online press conference on Thursday, February 10, 2022.

Perry sees that the process of national economic recovery continues in 2022 despite soaring Covid-19 cases of the Omicron variant. As of February, a number of economic indicators were recorded as good, amid sloping improvement in people’s mobility. These indicators include retail sales, consumer expectations, and Manufacturing PMI.

In Q4/2021 IV 2021, the Indonesian economy grew 5.02 percent (yoy), up from Q3’s 3.51 percent (yoy). Improvements occurred in almost all GDP components, as the economy recovers following the peak of Delta outbreaks.

In 2021, the economy grew 3.69 percent, far better than 2020’s 2.07 percent contraction. The highest growth was recorded in the islands of Sulawesi, Maluku and Papua, followed by Java, Sumatra and Kalimantan.

HENDARTYO HANGGI

Source: https://en.tempo.co/read/1559602/bank-indonesia-predicts-5-5-economic-growth-in-2022