World Bank Predicts Economy of Indonesia to Grow 5.3 Percent

• Jun 15, 2017

TEMPO.CO, Jakarta – World Bank predicts that Indonesia will increase its real gross domestic product (real GDP) by 5.3 percent in 2018. This is backed by a number of economic growth indicators during this year’s first quarter.

Based on the World Bank’s review, Indonesia’s economic growth in the first quarter of 2017 increased from 4.9 percent to 5.0 percent. It is mainly as a result of the government’s recovering consumption and the drastic increase in export value.

World Bank Country Director for Indonesia Rodrigo A. Chavez explained that Indonesia’s improved S&P investment rating was also affecting their prediction on the country’s positive growth.

“The improved S&P rating is a significant acknowledgment for the government’s improvements in fixing its fiscal management and credibility,” Chavez said.

However, he reminded that the positive performance must be supported with a simultaneous structural reform. The process is deemed important to expand the economic potential in order to maintain the economic stability and not just rely on commodity exports.

Source: https://en.tempo.co/read/news/2017/06/15/056884845/World-Bank-Predicts-Economy-of-Indonesia-to-Grow-53-Percent