ADB Raises Indonesia's 2022 Economic Growth Projection to 5.2%

The Asian Development Bank (ADB) has raised its forecast for Indonesia's economic growth to 5.2% this year, citing robust domestic demand and stable export growth.

The revised projection, provided in the *Asian Development Outlook* (ADO) Supplement released on Thursday, July 21, 2022, is an upward revision from the ADB's previous April 2022 forecast of 5%.

This upward revision in the supplementary edition of the ADB publication is also in line with the increased projection for Southeast Asia's economic growth, which has been raised to 5% from the previous projection of 4.9%.

The ADB's release also projects that Indonesian inflation will rise to 4%, compared to its previous April projection of 3.6%, due to high commodity prices. For next year, the ADB projects Indonesia's economy will grow by 5.3% and inflation will be 3.3%.

ADB Director for Indonesia, Jiro Tominaga, stated that activities in Indonesia are gradually returning to normal, while Covid-19 infections remain under control, despite a recent increase in cases.

“Increased inflation is reducing household purchasing power, but the persistently high prices of several key export commodities are generating export earnings and fiscal revenue, enabling the government to provide assistance amidst rising food, electricity, and fuel prices, while simultaneously reducing the budget deficit,” said Jiro.

The ADB is also committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty.

The ADB is a financial institution established in 1966 with 68 member countries. 49 of these countries are located in the Asia and Pacific region.